The Government Shutdown and Your Real Estate Transaction

Aside from the free food in Arlington for Furloughed employees, how else will the shutdown impact our local area?

In truth – probably not much, if it’s short.

The biggest impact will be on the IRS. “EVERY single loan requires a tax transcript so a short shut down will cause some delays but a longer shut down obviously could back the IRS up on all the requests they receive while they are shut down” says Brian Picker with 1st Mariner Mortgage.

FHA (for single family homes), VA, and Flood Insurance programs will not be impacted by the shutdown, however some delays may occur in processing. However, FHA’s multifamily operations will not be able to underwrite any loans during a shutdown.

We’ll have to wait to see how long it lasts and the true impact on the stock market, interest rates, and loan closings.