FHA Loans and a Government Shutdown
Will the Government Shutdown Affect Your FHA Loan?
If you are currently in the process of an FHA loan to purchase or refinance, then probably the last thing on your mind is how a government shutdown will affect it. Well, if a government shutdown is to happen it could possibly put the brakes on your 203k or Standard FHA home loan. So how concerned should you be and howcould this affect your FHA financing?
Your FHA Loan could potentially be delayed in the following areas:
1) FHA Case Number – which is requested and assigned at thestart of your FHA loan
2) FHA endorsement – which is required to close your FHA loan
Another government agency that could slow down FHA & Conventional loans would be the IRS. Because it’s standard practice that lenders verify tax transcripts which are provided by the IRS. Not to mention if a tax refund is needed to complete the transaction.
Plus borrowers who work for the government and are applying for a home loan may find it a challenge providing a current pay stub or verifying employment during this time.
Now these are all possibilities,but in any case if there are issues with some of these services it will only be temporary. So take it all in stride