Louisiana couple are among borrowers impacted as processing delays government loans.
VIDEO: Government Shutdown costs Baton Rouge family $10,000 and dream house potentially
Louisiana couple are among borrowers impacted as processing delays government. Click on the MSN Real Estate weblink above to watch the video.
According to Brady Webb at Loansolutionsnow.com, Home Loans Will Be Delayed in these capacities below:
“1. Federal Housing Administration (FHA) loans: With the shutdown, we may see delays, but not a complete stop to FHA loan closings. A report from the U.S. Department of Housing & Urban Development (HUD) has stated that FHA’s Office of Single Family Housing will remain open for business, albeit with a smaller staff. The office will continue to endorse loans and it doesn’t expect the impact on the housing market to be “significant, as long as the shutdown is brief.”
2. Department of Veterans Affairs (VA) loans: Like the FHA, disruption is possible, but not absolute. The VA will continue to guarantee mortgages for Americans who have served in the military, since these loans are funded by user fees. It warned, however, in its Sept. 25th contingency plan, that Loan Guaranty certificates of eligibility and certificates of reasonable value may be delayed.
3. IRS Tax Transcripts: If a loan requires the verification of at least one previous IRS tax return, this process may be delayed. While prior years’ tax transcripts can be ordered online, there is no indication whether an automated fulfillment system will be impacted.
4. Verifications of Employment, for Government Employees: If a federal government employee is seeking a mortgage, and his employment verification is required prior to closing, a lender may be unable to verify this during a shutdown.
5. FEMA Homes: Homes in flood zones would not be able to close, as flood insurance could not be obtained.
6. USDA Loans: During the shutdown, the Department of Agriculture’s doors will be shuttered. According to the USDA, no new housing loans or guarantees will be issued through its Rural Development programs. The USDA has also warned that a long shutdown will result in construction setbacks and “a substantial reduction” to available rural housing relative to population.“
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