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.
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