USDA Owes Back Taxes: When a client still owes Federal taxes from prior year(s, are payment plans allowed for USDA, and is there a minimum number of months payments need to be made?
Answer: Yes. The IRS tax debt must be counted against the borrower. USDA borrower can buy a home even if they owe back taxes. However, a payment plan to the IRS must be in place. Applicants who have an IRS tax debt are ineligible if a repayment plan is not underway. The applicant must have made [...]