Home loans and the government shutdown

Home loans and the government shutdown
Houses. (Source: WBRC Staff)


Government shutdown effect on home loans

BIRMINGHAM, AL (WBRC) - Even though it’s the winter months, the real estate business continues to be active.

Home buyers looking for government backed loans are beginning to worry as the government shutdown drags on into its third week.

“The concern for first-time home buyers is did they plan ahead. If they just started their search and haven’t worked with a mortgage lender, an extended shutdown will create some problems,” said Glenn Phillips with Lake Homes Reality.

Phillips said not all government loans are out of reach with the work stoppage. “If you have VA loan you are probably going to have a bind if you are looking for that type of mortgage. Other mortgages hopefully by the time you found your home, this will be resolved. If not, you need to be planning ahead,” Phillips said.

There are also concerns if you need social security or tax information. These agencies are also shut down.

Some home buyers may be ready to move into their home, but everything is on hold. Phillips believes the shutdown will end, but in the meantime calm down.

“If you are first time home buyer and haven’t started the process, it can be alarming. It will take time to find the right home in a limited inventory environment. Don’t be overly reactionary. It will work out for you,” Phillips said.

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