updated: seems there’s been a reversal on FHA mortgages, as first mentioned by Marianne Washington of Wells Fargo Home Mortgage.
Certainly you’ve heard about this whole idea of a government shutdown. Regardless of your feelings on the issue, PLENTY of home borrowers and home sellers need to know what to expect moving forward.
Several types of mortgage loans are backed by the United States Government, including FHA, VA, and USDA loans. If you are a borrower currently under contract on a property and have applied for financing under one of these mortgage programs, you are most certainly going to be affected
should when the government shuts down on October 1st. Contact your agent to see what options you might have going forward, but chances are they’re not going to know much, either. My suggestion to our clients would be to contact a lender to see what other options might be available, including low-money down conventional programs (since they’re issued by Fannie and Freddie). If you want to know who to talk with, email me and I’ll be glad to make a recommendation.
Sidenote – I’ve heard conflicting reports on whether VA loans will be affected by a government shutdown. Since VA loans are funded at least in part by user fees there’s the possibility that they will continue, but I’m a cynic … I’m going to suggest that they’ll be placed on hold, as well.
If you’re a home seller currently under contract and your buyer is using one of these three programs, I hope you’re patient. All three of these loan programs are most certainly going to be put on hold indefinitely, so hold tight.
This too, shall pass, and perhaps it’ll be good for Washington to see we’re doing just fine despite them. Want to know more? Here you go.