Government Shutdown effect on Real Estate

I know we may all be wondering how the Government shutdown may affect our daily Real Estate  business.  

Here are the basics:
-FHA and VA loans are currently experiencing a slight slowdown, as long as the shutdown is short lived
-USDA is not accepting new applications or issuing guarantees 
-The IRS and Social Security Administration are not able to produce tax transcripts and verifications, this is a standard guideline on all loans.  This is the largest factor that can affect the loan process.
– FEMA slowdown only affects map amendments or map issues
This shutdown will have an impact on real estate, for both home buyers and sellers.Although this will have an effect on pending home sales, buyers and sellers should not panic. Home buyers and sellers need to be aware of

 

With the shutdown, many government employees will now be on furlough, which affects the housing agency’s employees.

 

This means home buyers who have applied for an FHA, USDA, or VA loan will probably not be able to get it until the shutdown is over. Home sellers who have signed a contract with a buyer obtaining one of these loans may not be able to sell the home until the shutdown is over.

 

Delays will also occur because a percentage of IRS employees will now be furloughed. Mortgage companies use 4506 request forms to verify income from the IRS, and with the shutdown this part of the loan process will likely be delayed as well.

 

According to the HUD Shutdown Contingency Plan, as long as the shutdown is not for an extended period of time, there shouldn’t be too much of an impact on the housing market. However, if the shutdown lasts there could be a decline in home sales.

 

Fannie Mae and Freddie Mac backed mortgages are not be affected by the shutdown.

If you’re thinking of selling your home find out your home’s value free today 

 

Government Shutdown

Government Shutdown

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