Government Shutdown Could Affect FHA Loans
These banks and lenders rely heavily on the insurance provided from the Federal Housing Administration (FHA) to help fund these loans. If there is a shut down, the FHA will not be processing any existing or insuring any new mortgages. FHA loans account for approximately 30% of all mortgages written in today’s mortgage market.
Many banks and lenders will have to fund and hold onto the loans until the government re-opens, and unfortunately, many are not willing to take that risk.
Government Shutdown Could Affect Mortgage Closings
According to the Wall Street Journal, U.S. Housing Secretary Shaun Donovan states he was “very concerned that a significant number of lenders would not choose to close on those loans.” In addition, many are concerned about the ripple effect this may have on an already compromised mortgage and real estate industry.
Government Shutdown Could Affect You
How could the shutdown affect the average mortgage consumer? Or those planning to buy a home in the near future? A shutdown could mean a long delay in closing on your mortgage – putting you in a long line waiting for loan approval when the government does re-open. Moreover, you could run the risk of your mortgage rate lock expiring during the shutdown. At that point, you would likely have to pay either a rate extension fee or lose your lock and potentially be stuck with a higher rate than you had planned.
Quicken Loans is Open For Business As Usual – Helping You Qualify and Close FHA, VA and Conventional Loans
Fortunately for you, Quicken Loans is staying open with full operations during the government shutdown.
“Everything is business as usual, even if the government does shut down,” says Bob Walters, Chief Economist of Quicken Loans. “We will continue to take applications and close loans on all product types – including FHA and VA Loans.”
You can rest assured we will remain ready and available to close your loan quickly and with the same high-quality service that you’ve grown accustomed to with Quicken Loans.Don’t let this government shutdown affect closing your mortgage. We remain committed to helping our clients close their loans quickly and easily, without delay.