Don’t Call the Movers Quite Yet if You’re Closing on a Home with a Government-Backed Mortgage.
As the federal government shutdown enters its third week, many civil servants are now worrying about paying their mortgage and rent payments. Some residents of affordable housing, along with voucher holders, are also at risk if the work stoppage continues into the coming weeks.
But what if you’re the average family trying to close on your first home? Depending on the federal program, you may be good to go, or you may be at wit’s end.
Confirming loans for Fannie Mae and Freddie Mac are full speed ahead. (In fact, the GSEs are specifically accommodating furloughed federal workers.) The same goes for VA loans—the Department for Veterans Affairs is funded fully for FY19.
On the other hand, USDA loans are on complete hold. No closings will proceed and no new applications are being accepted.
Finally, the status of FHA loans is uncertain. It depends on which lender you’re using, and whether your loan is pending on additional guidance from FHA.
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