Can I buy a Home if I Have Tax Lien?

I hate to give a definitive answer of No on this question, as there may be the occasional exception, but getting a home loan with a Tax Lien is next to impossible. Your options are pretty much limited to buying the house in cash or with an exceptional amount of money down (e.g. like 75% and find a portfolio or hard money lender to give you the money). If you can part with that much cash, it begs the question as to why you have not paid off your tax lien in the first place. 

The reason that a Tax Lien is an absolute deal breaker is that the lender immediately has a lien on their collateral. Tax liens take precedence over all other debts owed on a property and no lender is going to want that.  Additionally, a tax lien shows an inability on the part of the borrower to pay their debts. 

Work on paying your tax lien off first, possibly settling the debt with the IRS or getting a personal loan, in order to pay off the lien. 

 

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