OKLAHOMA CITY - Right here in Oklahoma, some selling their homes or property could start to feel the effects of the government shutdown, particularly when it comes to requirements to qualify for loans.
“For First United, we`re trying to waive as many of those requirements as possible,” said Bryan Carroll, First United Mortgage loan consultant.
Requirements like tax transcripts needed for self-employed buyers or buyers with rental income are near impossible to get from the IRS amid the shutdown.
But Carroll said not everyone’s going to have issues.
“If they’re going FHA or VA or conventional financing, they’re usually not going to have any problems,” Carroll said.
Loan programs connected to the USDA and Bureau of Indian Affairs have ceased all but essential functions. If your loan is in process with either of them, you won't be able to close until the shutdown is over. Social security number verification services are also frozen right now, adding another potential hurdle for home buyers.
Carroll said though the national flood insurance program is not shut down, parts of FEMA have not been funded, causing some to have difficulties finding information on flood insurance.
“Luckily mine has not had that big of an issue but there have been some delays for it,” Carroll said.
If the shutdown drags on, people selling their homes may turn to buyers who can make a cash offer. Even if it's less than asking price.
If you are just now starting the buying process, it’s a good idea to check with your lender to see what impacts you may have from the shutdown.