How does the government shut down affect my loan?
(See comments below this post for updates to status on processing…good news there!!!)
Very quickly, I wanted to post another message about how the Government Shut Down is affecting borrowers using home loans to purchase or refinance their homes right now. This is part II of posts on this topic. Original thoughts that came out were more optimistic than what has resulted in the industry. Please see part I after reading this post.
Bad news for USDA Borrowers
I can not speak for EVERY lender or investor out there, but I can not see how it could be much different from one lender to the next. That being said, we are being told that USDA is shut down right now. No loans in process are getting closed.
Bad News For All Borrowers?
Regarding all other loans, FHA, VA, Conventional, etc… The 4506 that is ordered from the IRS and is used to confirm accuracy of tax returns, these are not currently getting processed by the IRS. That means, any loans in process or that are needing to get processed soon that do not already have 4506’s, these loans will not close until the IRS gets a plan to process these. On the other hand, word is that the different lenders are getting together to figure a way to get these all closed without the 4506 if this continues for another couple of weeks. Best of luck!
Deanna Heiliger
I was just talking with a friend about this, and we both were wondering what was happening with loans in process. What a drag! Thanks for the information here!
Stephanie Clopton
Great information. There’s a lot of confusion out there about loans in the process and getting one.
Jim Striegel
I sure hope this doesn’t hurt the housing recovery. Thank you for sharing this information. Very helpful.
kungphoo
That is terrible.. What are people going to do if they need to get out of 1 house and into another?
Jeff Brand
Thank you for sharing this information. Helps to share with my clients. Sure hope this ends soon!
Brad Lynch
The major lenders are allowing the close of loans now without the processed 4506 for the short term during the shutdown now. So, there is still slow down in the process, but at least people can close on their homes now. 🙂
Casey Gardner
I’m glad we have you to answer these questions. I have wondered too about people in between homes. You have great information on your blog here.
Loretta
This shut down is simply a political power struggle meant to make the people struggle so we’ll all hate republicans and love Obama. I sure hope the people can see through this for the manipulation it is!
Vinma
I think this post contains a lot of info for a tough time as this. Certainly appreciate your thoughtfulness in putting this together. Thank you.
Deborah
What a mess. It should never have gotten to this point. It’s too bad that those trying to get a home loan will be affected.
Kelly
Wow its amazing with the government shutdown how many people this really affects. Not only the government employees on furlough now loan officers and realtor’s will be affected since they can’t get these loans to close.. So sad…
Meli
I can’t imagine what the people who are seeking a loan are going through. So glad I am not in this position.
Vene'
this is unfortunate… I hope this issue is resolved so people can move on with their lives in their new homes
jo casey
Wow – I wonder if congress really knew the impact of their behavior? Or if they cared?
Irene S.
What a bummer. A lot of people are being affected. Patience will be a virtue at this time!
Dov Shapira
The shutdown is driving me crazy as well the stock market
Yeeks
Yvonne Brown
Wow! I didn’t know it was going to effect the loans like this!
Daniele Holmberg
I had not heard about this yet..thank you for sharing..I hope more changes continue to come:)
dawn
I really hope this ends soon. Thanks for the information
Don Purdum
Everything in our lives happens for a reason. I hope that it ends soon and everyone gets into their new homes very soon.