I am wondering if anyone had experience with January 2018 government shutdown and their USDA guaranteed loans being held up? I haven't reached out to my lender yet about this and they have not mentioned anything to me about it either. I didn't really think too much about this factor at all until lastnight and did a google search only to find out that the USDA is not in service and people waiting on funding or the stamp of approval are in limbo right now.
After almost 3 years of hard work repairing our credit, My fiance and I are in the final stages of closing on our first home.We cancelled our previous contract on a short sale home after almost 4 months of no movement. It was a terribly complicated situation in that the estate owners (siblings) of the house did not disclose that there was 14 additional acres attached to the property and the home was a short sale because their parents died having a reverse mortgage balance. Nearing the end of our ordeal, the owner was attempting to have us buy the house and 14 acres and then illegally deed him back the land in a seperate contract.Even with us offering to pay off the entire reverse mortgage balance, the owner refused because he wanted the land. Come to find out he and his sister lived on either side of the property we were trying to buy.. it was a very awkward and hectic situation so we cancelled.
Fast forward to now and we found a new house, put in an offer and the owners agent never responded. Our agent said it was because we must have came in low in our offer.. so we bumped it up by 20k and then got a reply that there was another offer in place. We decided to walk away and hoped that they would bite on our offer eventually. 2 weeks later we got a phone call from our realtor and their previous offer cancelled. To make a long story somewhat shorter, after some price negotiations and closing date tweeking, our offer was accepted and we started going through the stages of buying a house. We didn't order an inspection because the previous people who started a contract already had one and we accepted and waived our own. Our appraisal was ordered and completed last Friday. Now all were waiting on is final underwriting and a USDA stamp of approval. Our preliminary closing date on our mortgage estimate and contract stated January 25th. The owners of the home are still occupying the property and are using the funds from our sale to purchase a different property. I am really worried that this government shutdown will delay our closing date and cause the owners to back out of the deal or cancel our contract. We have already invested some of our money into this house ($1000.00 Escrow, $450 Appraisal) and seeing as though I really do not have any other options other than USDA because of the lack of funds upfront... It would absolutelly be heartbreaking on more than one level for us to lose this house.
Unfortunately the USDA will not issue conditional commitments (CC) during the government shutdown & most lenders will not fund a loan until they get the CC from USDA.
You will likely need to extend your close date.