Many people have no idea what the government shutdown means for the housing market. How will it affect you as a homeowner? If you are planning to buy a new home, are you still be able to? Here are some answers from HousingWire.com that can help you understand where the housing market stands in relation to the partial Government shut down.
- The U.S. Department of Housing and Urban Development are unable to process new housing voucher requests.
- The U.S. Department of Agriculture is unable to originate new loans or service existing loans. This could have a serious effect on the rural housing community; for both home buyers and existing home owners.
- Even though the Federal Housing Administration will remain operational many non-essential employees could be furloughed. If this occurs, the FHA processing of loans could experience a serious delay in their funding processes.
- The IRS also has plans to furlough non-essential employees. This means that the chance that delays will be caused for lenders as well, especially when it comes to processing tax returns for borrowers.
- The National Flood Insurance Program also faces issues with the extension being cut off – meaning no new or renewal policies can be issued and the existing policies will be in effect until the end of their term.
Here is the good news. If you are currently serving or have served in the military, you will still be able to receive a home loan as US Department of Veteran’s affairs is able to remain open due to the pre-funding issued by the President for 2019.
Additionally, all non-government run loans – such as Fannie Mae and Freddie Mac will not be affected by the shut-down.