Mortgage approval frustrationI have had a rough financial past from 2003 thru 2006 and had bad credit (around 525 score) but I have now increased my credit score to between 680 and 700 depending on the credit agency. I also have Federal tax liens (filed in 2008) on my credit report for the tax years 2003 thru 2005. In 2009 I entered into a payment plan with the IRS. I have made all payments due and, for the most part, have been on time with payments but twice in the last 16 months I have been late on my payment. I applied for a mortgage in April (my credit score at the time was about 650) and was told I needed to go the FHA route due to score and minimal down payment. I have good income and was preapproved for a mortgage in April. Since signing the contract on the home purchase and putting down earnest money, the mortgage company has said that since I have had late payments to the IRS on the payment plan, I am ineligible for an FHA loan. What are my options? Are there any other alternatives I have, short of paying off the IRS and getting the release on the liens? I have worked hard to increase my credit score to be able to purchase a home again. I thought I was good to go since I had a preapproval, but I guess that really doesn't mean much. Any advice would be appreciated.ThanksJuly 26 2013 - Omaha00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.