Did you hear about a possible Government shutdown - Which could affect FHA loans & USDA loans

By
Real Estate Mortgage Broker with Social Media - Infinity Home Mortgage Company, Inc

Has the government gone fishing again?

 

Be prepared for the worse !!!! 

Not sure if many of you know, but there is a possible government shutdown looming. This would affect FHA loans and possibly other mortgages. There are still talks on Capital Hill between the Democrats and the Republicans, if not solved, could shut down many parts of the government come Friday April 7th. The government funding bill expires on Friday at midnight.

Be aware this could affect the ability to get transcripts for IRS loans as well as more importantly, FHA case numbers. Not only could this delay the lender in obtaining a FHA case number, but FHA is increasing the annual mortgage insurance which goes into effect on April 18th, 2011.  ~ FHA monthly mortgage insurance changes April 2011 ~

 

 

The ending result is that this could affect thousands of home buyers if this issue is not resolved. Especially because the usage of FHA loans have increased over the years. New mortgage numbers state that 35 percent of all mortgages are FHA loans. Many don’t realize that sometimes a buyer might need a few days before a specific deadline because the FHA case number could go into a “holds tracking” status. There are various reasons why this might happen., but the fact remaining, that file is placed on hold. So if a buyer is applying on April 17th and the result is a “holds tracking” status, and it takes 2 days for the case number to clear, that borrower would miss the deadline for the new change. This would result in a higher mortgage payment.

On another note, some of us are still trying to see if this will affect USDA loans also. From one source, I am told that it would shut down USDA loans, which means the USDA won't be able to underwrite the loans.  I am waiting for some USDA officials to get back to me and I will update this post accordingly, unless someone knows otherwise.

 

Summary : Overall, this could affect so many other types of jobs. It still boggles my mind that the government is doing many things last minute. For a few years we had the national flood insurance issues that would come down to the last minute and so much more. People need to be aware of this, because this could affect thousands of home buyers and or delay closings, especially those applying for FHA loans.

On a side note, did you know that this would affect the military also? What about those military personnel with families in the United States who aren't working, depending on their spouses military checks. Again, why must we always wait until the last minute. Why can't we as a powerful nation, how some sort of emergency back up plan, for those that can't seem to agree on Capital Hill.

Here is an article by Kimberly Schwandt describing what jobs could be effected.  ~ Administration paints picture of possible government shutdown ~

 

Key Reminder : Some lenders might take more risks than others, in what they will originate & close if the government shuts down.

 

MARK LAPP wrote this post today, 4/8/11 and gave some more details if the government shits down... what it will do to lending...

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Bloggged 1 time:

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  1. Gary Miljour 04/07/2011 07:11 PM
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Ambassador
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Marilyn Boudreaux
Lake Charles LA Century 21 Realtor
Marilyn Boudreaux, Century 21 Mike D. Bono & Co.'s

I heard no shut down, money was extended

April 08, 2011 01:41 AM
Rainmaker
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Ginny Lacey Gorman
Homes for Sale in North Kingstown RI and beyond
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate

Jeff, it could have been a disaster...no sense here and why did we elect these people...wasn't it to do the right thing?

April 08, 2011 07:51 AM
Rainmaker
1,686,815
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

I hope those loonies in Washington get their act together and think about more than their political future.

April 08, 2011 08:06 AM
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Jeff Belonger
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
Social Media - Infinity Home Mortgage Company, Inc

 

GARY.. thanks for reblogging this and for the polite compliment.

MARYILYN... where did you hear this?  I have been searching the net and nothing... and I even came across an article yesterday talking about an extension, but that the President would veto any such extension. thanks

GINNY... . it could have been? It's not going to happen now? I am still reading articles this morning, that nothing has happened yet. I am just trying to find the correct source... thanks

GABE.... . yea, right... don't hold your breath...

 

April 08, 2011 09:02 AM
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Jeff Belonger
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
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MARK LAPP gave some more details if the government shits down... what it will do to lending...

The affect of a Government shutdown

 

April 08, 2011 10:45 AM
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