Updated over 2 years ago on . Most recent reply
Tax debt pay off prior to closing
Hea BP Forums!
I have found myself in a bit of a pickle.
My wife and I have a property under contract for 345k with 20k in seller credits at closing, funded with a FHA loan. We passed inspection with only some minor painting touch ups to be addressed prior to closing. Appraisal came back at $410k (65k in instant equity BEFORE reno!).
We thought we were in the clear and ready to start our investing journey when our funding came back as “conditional”, we took care of all of the issues with the necessary paperwork BUT we do have a pending tax payment for 2021 that is scheduled to be paid in August of this year.
The lender wants us to pay the total in full at closing (its slightly over 20k which is money we don't currently have on hand) OR get placed on a payment plan. The payment plan WOULD work out great if we weren't at 48% on our DTI. The monthly payment would be doable but would place us above the max DTI for approval.
Im stumped as far as how to proceed as most bridge loans are at $100k + and most small lenders wont loan on rule properties that have more than 2 acres (this 6 bed, 3 bath sits on 29 acres with its own pond and creek).
Im not sure how else to proceed. Neither my wife and I have friends or family who we could borrow the funds for on a short period.
Any suggestion would be GREATLY appreciated!!!
Most Popular Reply
29 acres with FHA loan is a huge exception. You are certain you have FINAL Clear to Close?
USDA would bring the Back end ratio down with Mortgage Insurance difference IF the property address is in the USDA map
Your lender is no good.
Make deals with the payoffs on your credit. You do not have enough time for an offer and compromise with the IRS as it takes months.
Sell the motorcycle get bill of sale, cash the check, deposit clears where you may show it clearly by the hour.
Sell jewelry, ask boss for a $2000 advance, ask your agent for $1000 credit,
ADD in Mortgage Credit Certificate MCC credit on income, ask for any county $1000 assistance programs
Time to dig and work to find the money.