With North Carolina as the 9th most populated state in the country, as well as the 5th fastest growing state, we’re going to be busy this winter with home sales. With the government continuing on with it shutdown, will this affect home buyers? Possibly, yes
Home loans issued by the US Dept. of Agriculture, (i.e. USDA loans) can not be processed during this shutdown. You can submit an application for the loan, but you can’t close on the home until the department can review your file. FHA loans for multi-family properties will have issues as well. A home inspection is needed on these types of loans and can not be done until a case number is given to the file. Again, that can’t occur until the government opens back up. If you have a FHA loan on a single-family property, the only change you might see is a slight response time due to being short staffed. Luckily, this area of the the Federal Housing Administration’s budget has a multi-year approval period so their funding isn’t tied into this current standoff.
Fannie Mae and Freddie Mac backed mortgages will not be affected because their operations are paid for by fees charged to your lenders. The Department of Veterans Affairs will continue to guarantee mortgages for those that have served in the military since these loans are funded by user fees as well.
It is important to also expect delays from the IRS on tax refunds. If you were thinking of using your refund as a down payment, you may want to consider other options if you plan to buy soon. Also, with the IRS shut down, lenders will have a harder time verifying a borrowers income if tax transcripts can’t be verified. Make sure to speak often with your lender to see what road blocks you may face.
As Realtors, we’ll help assist you in your home purchase by having constant communication with your lender and making sure you fully understand any challenges your loan may face during this time.
~Jennifer Crawford, Core Realty Advisors