Can you buy a house if you owe taxes?
I've got tax debt that I’m working to pay off. I’m also hoping to buy a house soon. Can you buy a house if you owe taxes?
Nick Kunze · Answered on Feb 21, 2022
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s great you’re paying off your debts. While it will make things more difficult, you can buy a house while owing taxes.
If you owe the federal government taxes, they’ve likely put a lien on your possessions or current property. This will set off warning bells for any lender, who may see it as a risk to approve you for a mortgage.
The easiest option is to pay off your tax debt before you apply for a mortgage. If you can’t wait, you can try and get an FHA (Federal Housing Administration) loan or a VA (Veterans Association) loan, which are loans designed specifically for low-income individuals or those with bad credit.
Once you manage to get a mortgage, the next thing you’ll need is homeowners insurance. If you want help finding the best possible homeowners policy, you should download Jerry.
Jerry makes it easy to find great coverage at a low price. Just sign-up to receive a long list of competitive insurance quotes. Once you pick the policy that’s right for you, Jerry even helps with the paperwork.
View full answer
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Browse More Content
Insurance in Your State
What Others Are Asking
Does Geico renters insurance cover moving?
I’m moving to a new apartment soon and I’m looking over renters insurance information. I have a renters policy with Geico, and they said they’ll be able to transfer my policy to my new address. Will my Geico renters insurance also cover the actual moving process?
Feb 21, 2022
How much will it cost to fix the thermostat in my car?
Last week my car's air system started malfunctioning. After I set my car to a comfortable temperature it began dropping to a low temperature then suddenly spiked to high heat. I just have collision coverage, so I’ll have to pay out of pocket for repairs. How much will it cost to fix the thermostat in my car?
Feb 21, 2022
Can you buy a house with a credit card?
There’s a fixer upper in my hometown on sale for only $12,000. My credit limit is higher than that. Can I buy a house with a credit card?
Feb 21, 2022
Read Advice From Car Experts At Jerry
What Is the Average Interest Rate On a Used Car?
The average interest rate on a used car for 2022 is 8.62%. Click here to learn more!
2021 Kia Forte Gas Tank Size
Regardless of trim level or engine size, a 2021 Kia Forte’s gas tank holds 14 gallons (or roughly 53 liters) of fuel—click here to learn more.
Browse By Topics
Easiest way to compare and buy car insurance
Find insurance savings — it's 100% free
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies