The continued shutdown of our Federal Government is concerning on many levels – including its reach to Cape region residents still working in Washington, DC., and the impact of people furloughed throughout the country. Of course it’s a topic unto itself.
We can at least address one question: How will the shutdown affect the home buying process?
Most federal agencies involved in federal housing and mortgage programs will continue to operate throughout the shutdown, though a few may process things slightly more slowly. To summarize a reference sheet from The National Association of REALTORS released on October 3, 2013:
The Federal Housing Administration (FHA) – specifically single family mortgage loans, VA Loan Guaranty program, Government Sponsored Enterprises (Fannie Mae and Freddie Mac) and the Treasury’s The Making Home Affordable Program (HAMP and HAFA) will continue to operate during the shutdown, with some requiring subsequent verification of information. The IRS and Social Security Administration may be the slowest to process requests for verification.
To summarize a local report from our friends at Dynamic Mortgage: We are closing loans!
Whether you have already put a contract on a property to buy or are considering a purchase, mortgages are still moving along! Check with your mortgage lender to find out if the federal shutdown may impact you personally, and always feel free to contact The Lee Ann Wilkinson Group with any questions about buying or selling homes and land in our Delaware Beach communities!