Zillow Advice: Approval Process - Federal Tax Lien on Credit Report http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ Zillow Advice | Zillow Real Estate We allow IRS lien(s) to be ... http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ <br/>We allow IRS lien(s) to be unpaid on all FHA, VA and USDA loans as long as you have an Installment Agreement in place for a minimum of 3 months accompanied by IRS Form 433. Most other lenders will want a minimum of 6 months, and other won't allow it at all. Please be advised you can request the IRS to withdraw the lien as long as you are under $25K. See below link under:<br/><br/><strong>Direct Debit Installment Agreements and Liens</strong><br/><br/>http://www.irs.gov/uac/IRS-Announces-New-Effort-to-Help-Struggling-Taxpayers-Get-a-Fresh-Start;-Major-Changes-Made-to-Lien-Process<br/><br/>Glad I can correct the incorrect answer below. <br/><br/>Best of Luck! Wed, 11 Sep 2013 19:17:00 GMT http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ 2013-09-11T19:17:00Z Federal Tax lien on a FHA ... http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ Federal Tax lien on a FHA and Conventional loan must be paid before the close of escrow.<br/>For FHA&nbsp; and conventional Underwriter won't require it to be paid if a written agreement with the IRS for a schedule of payments has being issue, with a&nbsp; proof of 3 months minimum payments have being made, 12 months for Conventional. Underwriter may still decline loan due to lender "overlay" rules they internally may have. Mys suggestion is to get pre approve before you go out to look for property.<br/>Good luck! Tue, 10 Sep 2013 18:05:00 GMT http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ 2013-09-10T18:05:00Z Fannie Mae is not as forgiving. ... http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ Fannie Mae is not as forgiving. Fannie Mae guidelines state that the tax liens must be paid in full before or at closing.<br/>&nbsp;&nbsp; FHA requires a minimum of 3.5% down payment. Debt to Income should be around 45% or below. Minimum credit score differs from lender to lender--My bank requires a 640 score but there are lenders that will go as low as 580. Tue, 10 Sep 2013 18:02:00 GMT http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ 2013-09-10T18:02:00Z With FHA--Typically a Federal ... http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ With FHA--Typically a Federal Tax lien would need to be satisfied. If you have a payment agreement with the IRS and can show that you have been making monthly payments on time for the last 12 months usually&nbsp;that will be acceptable instead of full payment of the debt. The monthy payment on the tax lien will be included in your debt to income ratios. Tue, 10 Sep 2013 17:55:00 GMT http://www.zillow.com/advice-thread/Federal-Tax-Lien-on-Credit-Report/510748/ 2013-09-10T17:55:00Z