Buyers /On October 3, 2013

How Does the Government Shutdown Affect Mortgage Lending?

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By Jim Baldasare and Ginny Phillips of Atlantic Bay Mortgage buying a home

With all the talk and news about the government shut down, Atlantic Bay wanted to update you regarding how it affects mortgage lending.

In most cases, it is business as usual with a few exceptions. These exceptions are:

IRS transcripts - Most loans that mortgage companies close need to verify income and taxes through the IRS. This service has been temporarily suspended. Atlantic Bay will monitor the process and make sure that they can continue to meet all closing dates. Most files in process have already been verified with the IRS.

VHDA loans - VHDA is fully functional at this time and it should not affect any closings.

VA - VA is fully functional at this time and it should not affect any closings.

FHA - The homeownership centers are closed for condo approvals and technical questions. If we are in the process of working with FHA on approving a condo for you, there will be additional time needed for that approval. The call center is operating for general questions. No other functions of FHA loans should be affected.

USDA (Rural Housing Loans) - All offices are closed at this time. USDA commitments, which are needed to close USDA loans are not being issued. Therefore, closings without a commitment will be on hold. We will update you once further information is received.

Fannie Mae/Freddie Mac (Conventional Loans) - Business as usual and no loans should be affected.

If you have any additional questions or concerns, contact Jim at 757-870-8387 or Ginny at 757-572-9635 for more information.

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Liz Moore & Associates is a boutique real estate agency renowned for having the region's top agents, with extensive market knowledge and local expertise that is only achieved through relentless training coupled with Liz's extremely high standards for professionalism. When you're buying or selling a home, experience matters.