Government Shutdown and FHA Loans

**smc0170** · 04-07-2011, 06:17 AM

Hello all. I've been trying to get a straight answer, but neither my Realtor or underwriter have been able to provide one. So I thought that someone on here might know!

I am set to close on a house on Monday, April 11th, using an FHA loan. As I'm sure that most of you are aware by now, if a budget is not passed by the government by tomorrow night, the government will shutdown until a new budget is passed.

I already have a case number on my loan, and as far as I know, everything is set for close. Will this shutdown prevent me from being able to close? I do not believe that we will be able to close on Friday to get it in before the shutdown.

**allyse_hansen** · 05-06-2011, 11:45 AM

The answer to this question is bit complex. First of all, I would speak with your lender again and what their plans are if the FHA shuts down. Many of them are considering different options depending on how long it is shut down (short or long term). Your lender can choose to close the loan and wait to insure it later -- or not. Some of the larger lenders say they plan to continue to close on FHA loans if it appears the shutdown will only last a few days.

If on the on the other hand the FHA is shut down permanently, then your FHA loan would no longer exist along with them.

Best of luck and god bless.