No, the best thing to do is borrow to pay the lien off, then worry about a mortgage. Good luck.Is it possible to obtain mortgage with a federal tax lien?
If you are talking about buying a property with a FTL, it is no different than buying a property with any other type of lien. The lien holders are paid at the closing of the property.
If you are talking about refinancing a property when you have a FTL. The bank will almost always require that the FTL be satisfied at closing, because the bank doesn't want to be subordinate to any one. This is usually no problem if there is enough equity in the property.Is it possible to obtain mortgage with a federal tax lien?
Technically, yes. Property subject to a purchase money security interest will have priority over the IRS lien if that interest is valid under local law. Rev. Rul. 68-57, 1968-1 C.B. 553.
Practically, no. The bank doesn't have to lend you the money and most won't if there is a tax lien on file.
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