Impact of Government Shutdown on Real Estate

As an Associate with Weichert Realtors Points East Yankee Trader I would like to share some information provided by our Gold Service Team regarding the Government Shutdown and it's potential impact on Real Estate.

A short-term shutdown should have limited effects, but please, if you have questions, contact your lender.  If you don't currently have a lender contact your Realtor who can provide you with lenders in your area. 

• The Federal Housing Administration (FHA) will be able to endorse single-family loans during the shutdown; however, only a limited number of FHA staff will be available to underwrite and approve new loans so the process may take longer.

• There will be no significant effect to Ginnie Mae, Fannie Mae or Freddie Mac.

• The Department of Veterans Affairs (VA) will continue to operate, which means lenders will be able to continue originating VA-guaranteed loans.

• The U.S. Agriculture Department (USDA) will cease all but essential functions and no new loans or guarantees through Rural Development will be made.

• Lenders may not be able to continue to verify social security numbers through the Social Security Administration.

• The Internal Revenue Service (IRS) will not process any forms, including tax return transcripts. Without tax transcripts, loan processing may be delayed, depending on individual housing agency requirements and aggregator guidelines.

• Mapping issues or amendments through FEMA will be impacted.

We will continue to keep you updated as we receive more information.

Thank you.