Government shutdown affects home buyers | Home & Garden
With the government shut down, some home buyers could be affected.
In order to start the process of buying a home, buyers need to give their tax return to a mortgage professional. The mortgage professional will then verify the taxes with the IRS and order a 'tax transcript.'
Due to the government shutdown, as of today, tax transcripts aren't being issued. If you ordered one before the shutdown, you're fine.
If you've applied for a USDA loan, your loan won't be funded because the loan is issued through the U.S. government.
"It is still out there, its just going to be a little bit slower process than normal," says Andrea Murphy, a realtor with ERA Evansville. Murphy says mortgage professionals are still accepting applications for anyone who wants to utilize the USDA loan program, they'll just have to wait to use it until the government re-opens.
Murphy says their office is still receiving documents, writing contracts, and listing homes because they are desperate for inventory.
She says, "Borrowers should not feel afraid."
There are some other loans that are not affected. If you've applied or received a conventional, VA, or FHA loan, you can continue to proceed as normal.
ERA Evansville says the local market is great and buyers should not worry. They're optimistic the shutdown won't last long.