10-01-2013 12:17 AM - edited 10-01-2013 12:21 AM
Hi, my wife and I are a little concerned with this government shutdown talk. We applied for a USDA loan and it was pre-approved by the bank and we then won a bid on hudhomestore.com. After the underwriter had received all our bank statements, proof of income etc our documents were then sent to USDA where it was approved by them on Friday 27th Sept.
Our agent said it was now being sent to HUD for final approval. We are not sure what this means but when we rang Monday and asked our agent she said "The documents are not there yet as the approval from USDA was late Friday afternoon. I don't know for sure if a shutdown will have an effect but I believe that since the asset management company is not a government entity we should be okay."
Can anyone shed some light on this for us. Was it sent to the HUD asset manager for final approval? After USDA has approved it what are the next steps and will the government shutdown affect our loan?
Any help on what the final process involves would be much appreciated and whether the government shutdown will have any affect on our closing. On Friday she said we would try to set a closing date for the 4th-8th of October.
Thanks in advance
10-01-2013 06:01 AM
Sorry to say, looks like USDA has ground to a halt.
One government lender that will indeed suspend its home loan activity, however, is the Department of Agriculture. The USDA says that no new housing loans or guarantees will be issued through its Rural Development programs in a shutdown. The department also warns that such a scenario could cause “a setback in construction start-up,” and if the shutdown lasts for an extended period, “a substantial reduction in housing available in rural areas relative to population.”
10-01-2013 02:07 PM - edited 10-01-2013 02:08 PM
Just an update. Our agent rang us and said we are confirmed to close on the 4th Oct. She said because it had already been through USDA and only needed final approval from the asset manager that the shutdown will not affect us. We are very very happy, hope everyone else in a similiar situation has a positive outcome and is not affected by the shutdown.
10-01-2013 02:35 PM
Join the line. My verification of taxes were ordered last week to the IRS, guess what because of the shutdown I got to wait.