Can You Get a Loan During the Government Shutdown . . . ?

  

Posted By Ron Rovtar

The K Company Realty
Boulder County CO

303.981.1617

This is a good question.

The best answer right now seems to be that most qualified buyers and refinancers can obtain mortgage loans as of right now.

However, some specific kinds of loans are not available, or less available, during the government shutdown.

And borrowers also may have to jump through additional hoops to satisfy underwriting concerns.

But, I am not a mortgage broker, so I posed this question to John Kurtz, senior mortgage broker at Premier Mortgage Group in Boulder.

Here is what John wrote:

"For the most part, it’s been business as usual for us. There are some delays getting documents that we need but it isn’t preventing loans from closing with a couple of exceptions.

"USDA and the Native American 184 program loans cannot close if we don’t have tax transcripts and a conditional commitment.

"The other potential problem is for a borrower who is currently furloughed and not working. There are some loan products that will not be allowed to close without a verbal verification of employment.

"A furloughed worker may not be able to close on some loan types until they are back to work. This includes FHA, USDA and most jumbo loans.

"Policies can vary from lender to lender and between loan types. Bottom line, it’s best to check with your lender if you think you may be impacted." 

John did note that things can change in a fluid situation like this shutdown. 

As such, buyers might want to include a clause in purchase offers to protect themselves if the shutdown drags on or causes other lending issues.  

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Ron Rovtar is a broker associate at The K Company Realty in Boulder, CO. Please call Ron with all your real estate questions at 303.981.1617.  To learn more about Ron, please visit his website. You can connect with him on Linkedin. For more about life in Boulder County and nearby, check out Ron's "Live In Boulder facebook page. Ron Rovtar does business as Front Range Real Estate, Ltd.  E-mail Ron.

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