Everyone is talking about the Federal Government shutdown these days. Of course, here in the shadow of Washington DC, we all know someone, most of us know MANY someones, who are currently furloughed.
There is a lot of speculation about what is going to happen next, how long this shutdown will last, and how it is going to impact us, so let's look at what is going to happen specifically in the housing industry as a result of the Federal Government shutdown.
If you are currently in the process of buying or selling a home, you must prepare yourself for the possibility of delays in loan processing - which could ultimately affect settlement dates.
Information is constantly changing so please verify details with the lender handling your transaction, and be sure to keep the lines of communication open with all parties in the transaction.
Who can do what?
- FHA - Lenders can get FHA case numbers, FHA insurance, and order appraisals.
- The Federal Homeownership Centers are CLOSED. Any FHA issues that need federal assistance/attention will not get resolved until the shutdown is over.
- VA - All VA is operational.
- USDA - The USDA offices are CLOSED. Any loan that was submitted to them and not given a conditional commitment will not be able to close until the office opens. If lenders have the conditional commitment, they should be able to close.
- IRS Transcripts - The IRS is not able to complete transcript requests. Many lenders will continue to need IRS transcripts prior to issuing a final approval on a loan.
Let's all hope this ends soon.