There’s been a lot of confusion and uncertainty about how a government shutdown will affect VA home loans.
The good news is there have been minimal impacts on VA lending during the 2018-2019 government shutdown. Lenders can still order appraisals, obtain a borrower’s Certificate of Eligibility, submit the VA Funding Fee and more.
Some lenders have reported issues obtaining documentation or verifications for prospective borrowers. We’ve been able to troubleshoot issues with the VA and other stakeholders and find solutions to keep our veteran borrowers on track.
The loan program continues to guaranty loans, and many lenders, including Veterans United, are closing loans without issue.
Other Mortgage Products
The story is similar with FHA loans, which haven’t experienced major widespread impacts from the shutdown. But every buyer’s situation is different.
The Department of Housing and Urban Development has closed its regional and field offices with limited exceptions during the shutdown, and that means borrowers with unique situations that require a closer look from HUD could experience delays.
The FHA’s condo approval process is also on hold during the shutdown.
Conventional lending has experienced minimal impacts because of the shutdown, in part because these loans aren’t backed by the government.
But USDA borrowers have been significantly impacted. The Rural Development program isn’t guaranteeing any loans during the shutdown. Depending on how long it continues, some buyers might see deals fall through, with potential ripple effects for those already under contract to sell their current home.
Additional VA Services
The Loan Guaranty program is one of many programs and services the VA says will not be impacted by a shutdown.
“VA is fully funded for fiscal year 2019, and in the event of a partial government shutdown, all VA operations will continue unimpeded,” VA Secretary Robert Wilkie said in a statement. “We thank the president and Congress for their commitment to our nation’s heroes in funding VA, and stand ready to provide all of the VA benefits and services our veterans have earned.”
Credit Impacts of a Prolonged Shutdown
A prolonged shutdown could make it difficult for some VA homeowners to stay current on their mortgage.
The VA is encouraging lenders and servicer’s to extend forbearance to homeowners in distress because of the shutdown.
They’re also encouraging mortgage servicer’s to waive fees and penalties for late mortgage payments and to suspend credit reporting to the credit bureaus. Even just one 30-day late mortgage can take a toll on consumer credit.
Talk with your mortgage servicer as soon as possible if you anticipate having problems making your monthly mortgage payment.
Skip Young – Your Maryland Veterans Realtor®
Yes, I am a Realtor, and I am MVHC or Military Veteran Housing Certification. Meaning I have to understand your Military Move, your Retirement move and when you take on you Veteran status, I need to understand all aspects. Working together is a partnership that I am willing to share my previous Elite Military Skills and 16 Years of Real Estate Knowledge.
f you are stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
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Skip Young Realtor® with Reviews as a Realtor®, has an extensive background in working with an Elite Unit while serving his country from 91 – 94. Now an Award-winning Realtor®, located in Waldorf MD, has proven not just in the ranks of the field with an Elite unit in the Army, but also in the Maryland Real Estate Business. By working with every type of client, to include active duty and veterans alike. His dedication to helping those who are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in the Washington DC, Maryland or Virginia. Military bases such as:
There are currently 23 million veterans and service members right in your local community of Washington DC, Maryland, and Virginia. They transact over $153 billion annually in the Local Real Estate purchases and Selling of Property, along with the Rental Market. Learn how you can help tap into and serve the veteran community with VAREP, the Greater Annapolis Chapter. Skip Young your Waldorf MD Realtor® and Veteran is still continue’s to serve my country by helping our community of brothers and sisters by representing the Government Affairs division. The position is about assisting in changing the laws that help protect veterans and service members who need to find housing in the Washington DC Maryland and Virginia area.
Skip Young | EXP Realty | Waldorf MD Realtor®
Realtor®, Veteran, New Home Sales
888-860-7369 x 240 Broker
137 National Plaza, Suite 300
National Harbor, MD 20745
Caruso Homes “Build on Your Lot”
2120 Baldwin Avenue, Suite 200, Crofton, MD 21114
Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Greater Annapolis Chapter