Kentucky USDA Rural Housing Approval Guidelines
Kentucky USDA Rural Housing Approval Guidelines for Tax payments, debt ratio, income, assets and appraisals How are delinquent federal income taxes without a payment plan handled? An applicant with delinquent Federal tax debt is ineligible unless they have a repayment plan approved by the IRS and have made a minimum of three timely payments on the most recent IRS approved repayment plan. Timely is defined as payments that coincide with the most recently approved IRS repayment agreement. If the borrower has an existing repayment plan, all plans and payments must be shown on the IRS repayment plan in order to satisfy Rural Development Guidelines. The applicant may not prepay a lump sum at one time to equal three monthly payments to meet this requirement. The lender must retain evidence of the repayment agreement and payment history in their permanent file. The tax debt may be paid in full at closing as long as loan funds or seller concessions are not used to pay of...