Everyone is concerned, at least here in Frisco TX. What is going to happen to my loan that I am in process of getting completed right now? I’m in the middle of buying a home, is this going to delay things? These are the questions regarding the government shut down and how it pertains to Frisco and surrounding greater Dallas home buyers.
Here is what you need to know, whether you are a Realtor researching for your client, or you are in the process yourself of getting a loan qualified:
I thought it was very good information for all us on how a government shutdown will affect our business in the Real Estate world. Please review and make sure that your FHA clients’ or if you are a buyer, your lender get all of their CAIVRS numbers ordered today and any IRS transcripts that were not sent out for client files in process.
FHA, Ginnie Mae, VA and USDA Will Be Affected If There is A Government Shutdown.
What does this mean for you? While we are still hopeful that a shutdown will be avoided (or another continuing resolution passed), it is unlikely that there will be any decision until the last minute. We understand the President is meeting with Speaker Boehner and Senate Majority Leader Reid at 1:00 p.m. EDT today.
Below is the latest information we have on the implications at the housing agencies. However, no final decisions have apparently been made. We do expect FHA & Ginnie Mae will publish FAQs if the shutdown does occur.
We have been advised that FHA Connection will be operational except that we will not be able to perform CAIVRS’ checks or obtain insurance endorsements (including lender insurance). However, we will be able to obtain case numbers.
We recommend running CAIVRS’ checks immediately on all clients loans that you want to close in the next week or two in case the shutdown does occur. A CAIVRS’ problem is likely the most immediate impediment to obtaining insurance once the loan the program is reinstated, and it is something that is required prior to our being able to issue an approval so it is possible that this could delay FHA closings.
USDA has advised us that lenders will be able to close loans for which they had already received a commitment. During the shutdown, USDA will not issue any new commitments, meaning that if a USDA loan hasn’t been committed prior to the shutdown, it will have to wait until the shutdown ends and there will most likely be a delay due to a backlog.
VA has indicated that they will continue business as usual during the shutdown. We have asked VA if there has been any change and are awaiting a response. The CAIVRS’ number piece could affect the timeliness of closing on a VA loan.
FHA Appraisal FAQs
FHA has posted revised Appraisal FAQs. FHA has added FAQs addressing the use of foreclosures as comparables and when a conventional appraisal can be used for a FHA loan. The link to the FAQs is: