About 42,000 Potential Homebuyers Could Be Affected by a Government Shutdown

December 6, 2017
Capitol Hill
Photo: Pixabay

Congressional leaders are currently working to pass a stopgap spending bill to keep the government open. If the bill does not pass, thousands of federally-backed mortgages would be delayed per business day.

Mortgage firms Fannie Mae and Freddie Mac are responsible for approximately two-thirds of federally-backed mortgage loans, and as Zillow reports, a shutdown would directly impact a large portion of the for-sale housing market. While it is unclear how a shutdown would affect renters using federally-funded vouchers, a shutdown in mid-December provides a brief time cushion. 

Borrowers with loans from the U.S. Department of Veterans Affairs (VA), the Federal Housing Administration (FHA) or the Rural Housing Service (RHS) would be directly impacted by a shutdown ... as federal employees are actively involved in processing those loans. If applications for funds aren’t approved before the government shuts down, they won’t be processed until the government reopens.

Read more

Comments

Related Categories

PB-Editorial/Topical
expand_less