Oct 21, 2013

Tip 36-2013: Does Government Shutdown mean Lending Shutdown?


In the wake of the recent Government shutdown, Tucker's Tip reached out to local lenders to obtain their opinions and perspectives about how the local real estate market will be impacted given what is occurring in Washington.  Here is the consensus:
  • HUD should not be affected considerably as long as shutdown is brief.
  • FHA loans are not impacted and will continue to close, and FHA will continue to back new loans.
  • VA will be operating as normal, so VA loans will not be impacted.
  • Fannie Mae and Freddie Mac are projected to continue along their normal course of activity.
  • VHDA is also anticipated to conduct business as usual.
  • RD loans with clear commitment will be able to close, but USDA has announced that no new commitments or guarantees will be made during the shutdown.
  • IRS will not complete the lender income verification (form 4506T) during the shutdown. Tax transcripts can continue to be requested, but the request will not be processed until the IRS reopens its doors. 
Be sure to talk to your local lender about how the shutdown will affect your specific situation. Although the impact of the shutdown will not be known entirely until the length of the shutdown is clear, the moral of the story is positive: there may be some limitations and delays when obtaining a loan, but you can still obtain one! Continue to sell real estate, and use our local lenders! 

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions, or visit our blog below for previous tips.  Thank you for allowing us to send you this email.      
           

William D. Tucker, III   
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Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636       

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