Tag Archives: government shutdown

Government Shutdown Hits Purchase Loans

The government shutdown is indeed having an impact on San Francisco purchase loans and transactions.  Several of my colleagues around town are reporting that lenders are unable to verify tax returns via the IRS (typically required for jumbo and some conventional loans). Additionally, lenders may not be able to get Social Security Administration verification for the purposes of proving buyer identity and reducing potential fraud.

There are definitely reports of open transactions are in holding patterns. As a result, buyers aren’t able to confidently remove financing contingencies—or receive and sign loan documents. In one instance, a seller has a back-up offer for all cash on the table and is seriously considering cancelling the buyer contract with the loan and moving to the back-up offer.  Continue Reading

Don’t Let Your Loan Get Shut Down, Too

The current government shutdown is certainly having its effect on the real estate industry. The main issue seems to be lenders’ individual policies on verifying borrowers’ tax return information—and how that verification can potentially shut down your loan during a home purchase.

The loan process typically requires buyers to complete a 4506-T tax verification transcript. However, the IRS is closed. And that means lenders are deciding how to handle this requirement. Continue Reading

Government Shutdown May Hit FHA Buyers

Update: Looks like the government shutdown has been averted! But in case anything else arises to shut down the government, here’s how your FHA loan can be affected.

Politicians are scrambling to avoid a potential government shutdown, which would affect many aspects of everyday life. The primary effect the shutdown may have on the real estate industry is that FHA loan processing may be substantially slower. Continue Reading

Get in touch:

Eileen Bermingham

Corcoran Global Living

415.823.4656

eileen@insidesfre.com

DRE# 01352627

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