How will the government shutdown affect your Real Estate business? For one thing it could take longer to close on clients loans if they are getting a federally backed mortgage such as VA or USDA.
The USDA program will be frozen during the shutdown. The last shutdown in the 90’s lasted 21 days. That could really screw up a closing.
VA loans will be funded according to the Department of Veterans affairs. However, certificates of eligibility and appraisal could be delayed because those are issued by departments that may have reduced personnel during the shutdown. That was the case during the last shutdown in the mid 90’s.
FHA appears to be the only one escaping the perils of the shutdown. The Federal Housing Administration confirmed that it will continue business as usual in an effort to “support the health and stability of the U.S. mortgage market.”
What should you do? Make sure you have a conversation with all your clients who are using a federally backed mortgage program so they are aware of the possibility of delays. They may need to put movers on hold or extend the contract close date. If you have additional questions feel free to contact me directly. For the lowest mortgage interest rates and best loan programs in California and South Carolina, make sure to give me a call. 843-388-5763 – Eddie O’Neill