thank you for your questions about your tax liens and their effects.
if you seek a loan to buy a home, your credit rating is one important factor lenders will review, before making a loan decision. given your tax lien, which is most likely reported on your credit report, it will be more challenging to get approved for a loan. you may have to pay off the debts in order to get the liens removed.
for anyone seeking a refinance loan, tax liens have to be paid off or removed, before any additional cash out can be taken from your property or even a rate and term refinance.
easier to remove liens
fortunately, in 2011, the irs has made it easier to remove liens (and also easier to avoid having them filed in the first place). you may be able to get the lien off your credit report, depending on what you owe and whether you have been paying your installment agreement as agreed.
you may need to use any money you saved for a down payment to pay down the tax debt, especially the state tax debts. as inflexible as the irs is, most state tax authorities are even less flexible. i suggest that you see if you can get the irs lien removed and work to pay off the state tax debt to get it off your report.
most of all, it cannot hurt to apply and see what lenders think of your own situation. a good loan officer will advise you what steps you will need to take in order to qualify for a loan.
bills.com makes it easy to compare mortgage offers and different loan types. please use bills.com to find a loan that meets your needs.
i hope that his helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs.