How will the government shutdown affect our credit?
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We’re in the process of buying a home. How will the government shutdown affect our credit? Can it affect the mortgage approval?
Only if you’re doing a FHA loan
Since the 3 major credit bureaus are private and the services they supply to lenders and creditors do no relay on government services in any way, consumers’ credit standing will remain unaffected by the government shutdown.
The majority of people who plan to take a home loan will also remain unaffected, again because most creditors are private. If however you’re doing a FHA loan – you may certainly suffer a temporarily delay or holdback in the loan approval procedures.
Freddie Mac and Fannie Mae, the government-controlled mortgage companies, have stated that their operations would be unaffected by the shutdown.
On the other hand, HUD (U.S. department of Housing and Urban Development) have stated that although they WILL continue to process single family loans during the shutdown, they anticipate slow rate of closing process due to the limited number of FHA staff available to approve & underwrite home loans.Your best course of action is to interact directly with your mortgage professional regarding your loan application.
Hope this helps.
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