Will the Government Shutdown Affect Your Loan Approval Process??

How will the government shutdown affect your mortgage approval?  There have been several conflicting reports regarding the status of FHA and VA loans in regards to the government shutdown, including reports issued directly from the Federal Housing Authority. This past weekend, a contingency plan for the shutdown was quietly changed and now states that FHA will be able to endorse new loans with the current shutdown in play. A word of warning: during the shutdown, FHA will have approximately 350 employees out of the normal 9,000 that will continue to work. One can't help but think the processing of these loans will be limited. VA loans should not be directly affected.  Conventional loans aren’t affected by the government shutdown.  The biggest impact is on USDA loans.  USDA is closed with the shutdown.

This is the best available information I have at this time.  If I learn of anything new or different I will be sure to pass it along in future posts.

Clay Burris

Clay Burris

Broker/Agent Team
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