Government ShutdownAs we conclude Day 10 of the ongoing shutdown of the U.S. government, you may be wondering how this impacts your ability to obtain and close mortgage financing. The good news is that in the short term, the shutdown is expected to have a very limited effect.

Most experts feel that a long-term shutdown is not likely, given the need for Congress to raise the debt ceiling by Oct. 17 in order to continue financing the nation’s debt. It is widely believed that the global impact if the debt ceiling is not raised will be a major factor in Congress ultimately agreeing to both reopen the government and continue to finance our nation’s debt.

A high-level summary of the short-term impact on the mortgage sector follows:

  • The Federal Housing Administration (FHA) is still endorsing single-family loans during the shutdown; however, only a limited number of FHA staff is available to underwrite and approve new loans so the process may take longer.
  • There is no significant impact to Ginnie Mae, Fannie Mae or Freddie Mac.
  • The Department of Veterans Affairs (VA) continues to operate, which means lenders can continue originating VA-guaranteed loans.
  • The U.S. Agriculture Department (USDA) has ceased all but essential functions, so no new loans or guarantees through Rural Development are being made.
  • The Internal Revenue Service (IRS) is not processing any forms, including tax return transcripts. Without tax transcripts, loan processing may be delayed, depending on individual housing agency requirements and aggregator guidelines.

http://www.realtor.org/articles/government-shutdown-updates

Post By Audeliz Angie Perez (160 Posts)

Angie Perez is a NJ Circle of Excellence award winning real estate agent for Weichert, Realtors in Edison. She sells anywhere from 12-25 houses per year on a consistent basis since 2005. Ms. Perez is primarily a buyer's agent on 60% of her real estate sales where she represents rental income investors, first time home buyers & trade up home buyers of 1-4 family homes within specific towns encompassing 4 NJ counties: Union, Essex, Middlesex and Somerset County. Many of Ms. Perez's clients appreciate her ability to negotiate favorable real estate deals for them. Many of her clients commented that her research abilities, her honesty, her knowledge of local market trends and her proficiency to manage multiple real estate transactions from start to close are some of the reasons why she was hired as their agent of choice. Please call, text or email Angie Perez to ask if she lists or sell in your town. If she can not help you, Ms. Perez would be more than happy to help or refer you to someone who can.

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