Everyone I speak with seems to be optimistic that the government shutdown, now about 12 hours old, will be short-lived and minimal in its impact on the Santa Clarita Housing Market. Perhaps only lasting one day, or three, or not much longer than a week. No one really knows of course, but hearing a general consensus is nice when I turn to area real estate pros, lenders, and financial gurus.
It’s Business As Usual
Lenders appear to be going about business as usual. If you’re looking to buy a home in Santa Clarita, it appears that you’re still able to do just that. The first worse thing I hear, is that there could be delays in the loan processing if you’re getting an FHA loan. This is because HUD’s Office of Housing employee count might go from 2,972 employees, to a workforce of under 100, according to one report I read. Receiving an FHA case number when applying for an FHA insured loan, though it’s through an automated system, might prove more difficult for your lender as certain aspects of the “FHA Connection” program may not function.
Self Employed?
The worst thing I’ve heard so far about a government shutdown affecting the Santa Clarita housing market, is about home buyers that are required to have tax transcripts ordered. These are typically home buyers that are self-employed, don’t receive a W2, and or have an income condition that will trigger the need for a verified tax transcript from the IRS. It’s possible that if the IRS shuts down, or some large percentage of it, they may no longer process those transcript requests. This could not only mean a huge disappointment to the above mentioned type of home buyers encountering an unexpected delay in buying a home, but it could be a big hit to the real estate market in general by causing fewer homes to sell during the shutdown.
As of right now, this government shutdown sounds like it will be short-lived as congress continues to vote an negotiate for a remedy.
Going forward you should expect to have no impact to your Santa Clarita home purchase since lenders are still processing loans and funding them according to standard FHA, Fannie Mae, and Freddie Mac guidelines. Loans will still be purchased on the secondary market by GSE’s, and the loans will still be insured. It’s in the processing and final approval of the loan where the problem could exist if the shutdown is prolonged.
In a time like this, you need local expertise and a great lender when financing your Santa Clarita home. Ask Robert @ 661-373-2374 to help you with your home purchase.
Latest Government Shutdown via Live Blog from Huffington Post
Latest on Government Shutdown From Freddie Mac And HUD at MortgageNewsDaily.com
