Good news. For the most part, it’s business as usual! Fannie Mae & Freddie Mac (i.e., conventional loans), VHDA loans, and VA are fully functional and allowing lenders to close loans smoothly. FHA loans are also closing, however, homeownership centers are closed for condo approvals and technical questions. If you’re loan is in need of either, it will be temporarily suspended.
There are a few snags in regards to ordering IRS transcripts. Most mortgage companies verify income and taxes through the IRS, which we all know is currently closed due to the government shutdown. Since ordering transcripts is temporarily unavailable, mortgage companies are evaluating loans on a case-by-case basis to decide whether to close. Back to the good news…transcripts are generally ordered and verified in the beginning, which means most current loans will not be affected!
The only major impact the government shutdown has had on real estate is related to USDA (rural housing loans). All offices are closed and therefore, not issuing USDA commitments. Closings without commitments will be on hold until the government reopens.
Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions on how the government shutdown will effect your real estate transaction, contact Alyssa at 757-329-6161 or firstname.lastname@example.org. You can also find Alyssa on Facebook or on the web at www.lizmoore.com/alyssagodwin.