How will USDA Rural Housing Loans that are in progress be affected by the Government shutdown?
Because the USDA Rural Housing employees are non-essential they will not be available for conditional commitments; one of the requirements for USDA Loan approval.
This will delay all USDA Rural Development Loans until the USDA staff return to work in order to approve them. This will of course create a backlog of loans and could cause further delays in approval. This could be a sticky situation for those closing on a short sale or a foreclosure because often there are deadlines that banks may not extend.
Here are a few ways you can avoid headaches and possible delays in your USDA Loan closing:
- Make sure your lender is aware of the shut down and how it might effect your loan
- Make sure the sellers and all the real estate agents involved are aware and preparing for a possible delay
- If you are buying a short sale or bank owned property, make sure the bank is aware of the situation. This is usually the job of the sellers agent so make sure your agent is in constant communication with them throughout the process
- Get approved ASAP! Your lender should be working to get your loan approved as soon as possible. Obviously the appraisal, repairs, and any bank approvals can hold up the process but don’t let it be you or your lender!
If you need to collect documents or complete an action for approval, don’t wait. If your lender has everything they need you should hear that its going to USDA within 2-4 business days. If not find out why.
If you want to know more about USDA Guidelines and see if you qualify, call 443-624-9398 and check out the USDA Loan Guidelines for Maryland