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Shutdown May Slow Down Home Loans

Shutdown May Slow Down Home Loans

As the partial government shutdown continues, you will begin to feel its impact more and more. One way you could be feeling it is if you are trying to buy a new house.

It's not all home buyers. FHA loans and other loans are going through. But Laith Daik of Texas Lone Star told KTRH it's a different story if you are trying to get a USDA loan.

“It’s focused on rural properties. No one is offering USDA loans. There is a government guarantee that is required and we can’t get it right now with that department completely shut down,” Daik explained.

That’s not the only delay, according to Daik. There are problems connected to the IRS as well.

“There’s a lot of quality control in working on mortgage loans. Part of that is getting tax information from the IRS. Currently the IRS is not processing any forms or any requests,” Daik said.

Other than that though, it's business as usual. But Houston real estate agent Kenya Burrell told KTRH it might just take a little longer for you to close.

“The change we will experience is how long the process takes. We’re expecting a lot of delays right now,” Burrell said.” “If you’re planning on closing on a home, it may be delayed because of the lack of staff they have available right now.”

Daik telling KTRH that real estate agents and financial institutions are taking things day by day until the shutdown comes to an end.

 

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