Government Shutdown and Home Loans

Picture of United States Capitol building concept.

How Does A Government Shutdown Impacts Home Loan?

That Depends…

Though are some areas of our lives that could be impacted by a government shutdown, many home buyers will experience minimal impact on an existing mortgage application.  The answer is dependent on a type of loan in question. Here is a quick reference to help understand the direct impact on home loans..

Conventional and Jumbo Loans

Conventional and jumbo loans are not loans backed by the government so there is no impact on these loans.

FHA Loans

FHA loans will continue to close and fund as in the normal course of business.

VA Loans

VA loans will continue to close and fund like the normal course of business.

USDA Loans

USDA loans WILL NOT be able to close and/or fund without a conditional commitment. There would not be an exception to this rule.

If you are in the middle of a home loan and are concerned about your mortgage, call your lender with what questions you have. Most mortgages are conventional loans. Therefore, these buyers will not be directly impacted by the shutdown. If you are in the market for a new home purchase, carry on and connect with me to help you navigate the best home loan solution for your home purchase goals.

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