Government Shutdown Effects on Home Loans

Government Shutdown Effect on Housing

Q: How will the government shutdown affect FHA/VA/USDA appraisals?

A: If you sell a home and write a contract for a government buyer (FHA/VA/USDA), we should be able to order your case numbers and appraisals so this should not affect your transaction.

Q: Will the government shutdown affect the processing or closing of FHA-insured loans?

A: FHA will have limited staff during a shutdown and the processing or closing FHA –insured loans may be delayed.  All FHA underwriting and processing requirements remain in force during the government shutdown and no loan may proceed that cannot fulfill those requirements.

 

Q: Can a lender obtain a new FHA case number?

A: Yes. Lenders will be able to obtain a FHA case number from the FHA Connection. 

Please note that all FHA underwriting and processing requirements would remain in force on loans originated during the government shutdown regardless of system limitations during the shutdown period.

Q: Will tax transcripts be affected?

A: All lenders require tax transcripts be processed by the IRS and are required prior to closing all loans.  So, your transaction could be held up waiting for the IRS to process the transcripts once they are back up and running.

Q: Will Credit Alert Interactive Voice Response System (CAIVRS) be available?

A: Yes. CAIVRS will be available to determine if a borrower has a delinquent federal debt. 

Q: Will VA and conventional financing be impacted by the shutdown?

 

A:  At this time the only impact on both VA and conventional financing is the inability to obtain tax

transcripts.

 

*USDA UPDATES

The government shutdown and USDA being out of money are two totally different issues! The fact that USDA is out of money happens each year and lenders are normally able to fund loans as long as long as they have a conditions commitment issued by USDA.

Loans in process will be submitted to USDA as usual, but the review of the files will be backed up depending on when the USDA employees are back to work. Loans that have already been submitted and approved by USDA, will be able to be closed as normal. Loans that have already been submitted to USDA, but have not yet been approved, will not be able to.


Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

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