We talked about the ridiculousness of the government shutdown on Monday. Today I want to answer a few of the common questions that I have been getting. As I write this post on a Tuesday afternoon, I sincerely hope that when it hits Patch Wednesday morning that it was all in vain. Hopefully the “smart” people in Washington can get it right. That’s sarcasm for the uninitiated.
The first question is, what about FHA loans? Is the shutdown going to screw up someone trying to close on a property with an FHA loan? As far as I can tell, no it shouldn’t affect it too much. The FHA offices are open, but they are working with a smaller staff. The worst case scenario is a delay in the process. What about VA loans? This is pretty much the same situation as FHA loans. If the shutdown continues expect delays, but it shouldn’t stop you from closing on your property.
What about when your loan needs verification regarding tax returns or employment verification for government employees? Again expect delays but that's about it. One of the big delays we should expect is if you are using a Rural Development Loan. RD loans are for property north of 26 mile rd. It’s a fantastic zero down loan for rural areas. One of the drawbacks of the RD loan is the amount of time they take. Usually 60 days or so. If the shutdown goes long, this could cause a few issues. Also, Jumbo loans are causing some issues. Jumbo loans are for mortgages exceeding $417,000. These loans require IRS verification. Most lenders are simply delaying the verification process until the government reopens. For the most part, standard loans are moving through the system as usual. "Standard” however, does not include loans needing flood insurance, loans for self-employed borrowers or loans requiring Social Security number verification.
I would be shocked if the shutdown continued for another week. I honestly believe this is much ado about nothing. The real problem in Washington isn’t the shutdown. The problem in Washington is the spending crisis. We can’t continue to print money and drive up the national debt, but that is a whole different blog. If you are looking to sell a home…...buy a home…...invest in real estate…..or start a career in real estate contact me today.
Chris Taylor
Keller Williams
586-524-1095
Chris.taylor@kw.com
Www.christaylor.kwrealty.com
