Buying a house is stressful enough as it is, now a potentially bigger problem comes from buyers not able to close on their loans.
When it comes to FHA loans and other government loans, for lenders the problem is with the IRS and not being able to obtain tax transcripts.
Loans cannot be closed without the borrower's tax returns.
FHA loans have not stopped and neither has the application process, the problem is getting the loan insured.
"It's not only the government insured loans that could be affected but the conventional loans. We have to pull tax transcripts on all of our loans so if those tax transcripts can't be pulled even conventional loans would be delayed," Jonathan Clem with NOLA Lending in Bossier City said.
Incoming 2014 National Association of REALTORS® (NAR) President Steve Brown noted the following points as it relates to real estate and the government shutdown:
· Fannie & Freddie will not be impacted
· Federal Housing Financial Agency will continue their operations
· FHA will continue to endorse new single-family mortgage loans
· FHA multi-family program - will not make new loan commitments
· The National Flood Insurance (NFIP) will not be impacted as it is funded by insurance premiums.
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