5 Real Estate Transactions Impacted by a Government Shutdown
1. FHA will not make commit to new loans in the Multi-family Program during the shutdown. There may be some delays with FHA processing.
2. Fannie Mae and Freddie Mac are not reliant on appropriated federal fund and should operate normally. BUT…Fannie Mae and Freddie Mac may have a hard time getting social security numbers verified and getting a tax return transcripts. Both are needed to process a loan.
3. Rural housing loans will not be issued during the government shutdown. That is a 100% rural development loan.
4. SBA loans would most likely be delayed (mainly impacting some commercial property financing but not most)
5. VA loans should still close but there will be fewer processors meaning longer wait times (potentially).
-Only 11% of home buyers were negatively impacted by the last government shutdown.
-25% of home buyers decided to delay buying during the last government shutdown.
In the end all, the impact of a government shutdown will be minimal. Some real estate transactions will be impacted or slowed down though.
Call Nathan Walldorf for all of your real estate needs. 423-544-7700.