Government Shutdown: Your FHA Loan

Yesterday’s news of the government shutdown has people scrambling to find answers, especially those who are in the midst of buying a home.  The Federal Housing Administration (FHA) issued a statement following the news of the shutdown, reporting that they will continue to fund loans for home buyers with limited staff.

The challenge we will face, isn’t about the FHA loan money but rather the process of getting the paperwork in order to get the loan. There are several branches of the government that are now closed as result of the shutdown, the IRS and the Social Security office included.  

Two requirements most lenders need for borrowers include IRS transcripts and Social Security verification. If lenders are not able to obtain this information, the FHA loan cannot be closed.

At this point, there is no way to predict how much the government shutdown will impact the FHA loan process. If the government shutdown lasts more than a few days, it could delay loans and refinances. If you are a buyer planning to use an FHA loan to purchase your home, we encourage you to speak directly to a qualified loan specialist before you make any assumptions based on what you hear from the media reports.

If you need a recommendation for a qualified lender, please contact the Russo Team. The news regarding the government shutdown is constantly changing and we anticipate more news to come in the following days. We will do our best to provide you with the facts as they apply to the real estate market. Please don’t hesitate to contact us if you have any questions or concerns. Frank

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