I Hope You’re Not Counting On A Government-Backed Mortgage
If you are counting on a government-backed mortgage this month then be prepared for a long wait. If the forecast shutdown of government services comes to fruition at midnight tonight, then there won’t be any government-backed loans – in fact, come to think of it, there won’t be any government-backed anything. Of course, wise heads may prevail today and we may be able to go to bed tonight a little easier. Might.
It does raise the question about relying on third parties to conclude transactions. If you are hoping to use an FHA loan, then one of the pre-requisites is an FHA case number – no government services will mean there is no one there to create your case number. The end result – no loan; at least, for now.
For those hoping to secure VA loans, your problems are compounded by the close involvement in these loans. VA appoints their own appraisers, so those who are waiting for an appraisal before having their loan finalized will also be left in the lurch. Too bad if you have a timed appraisal contingency.
This will affect both buyers and sellers. With buyers unable to complete mortgage requirements, they will not be able to buy. This is going to leave sellers with no buyers and could even depress the housing market further. Some sellers may even find they have rejected offers from more conventional borrowers (who should not be affected too greatly by this current problem) only to find their sale is hung up on Capitol Hill dissent.
The bottom line – we all love tea parties, but not when they create havoc in an already suspect housing market.
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