I have had a couple of calls this morning from borrowers that have concerns about how the shutdown of the Federal Government is going to affect the processing of their mortgage loans.
The good news is that for the most part mortgage loans will be processed as normal. Conventional mortgages will not be affected at all for the most part. FHA and VA at this point should function for the near future. The only impact that the federal shut down will have is to slow down the processing of USDA loans once they are at USDA. The submission and approval of these loans with the lender should go through the process as normal. Depending on how long the shutdown lasts the main impact will be upon final review at USDA.
So if you are purchasing a home in the next few weeks there is no reason to change your plans. As a small upside to all this chaos it appears that interest rates will decrease slightly.
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