No Government Shutdown-All is Well with Mortgages in Southwest Louisiana


Government Shutdown
The Government Won't Be Taking a Long Lunch

There has been a of controversy  this week regarding an impending  Government shutdown and the Government taking a long lunch break! What does that mean with regards to real estate in Southwest Louisiana?

If you have been watching the national news you have probably heard  House negotiations and a possible Government Shutdown.  The news just reported There is not going to be any shutdown, all is well until September!!  Learn more about the Budget deal reached  in a news story as reported by local KPLC TV NBC Affiliate.

FHA loans and  USDA loans which are both very popular loans for Southwest Louisiana Home Buyers. Both FHA and USDA loans are government loans so understanding how a shutdown would affect the mortgage industry is important.

The National Association of Realtors has posted a good source of explanation that explains what a Government Shutdown will mean for Real Estate Transactions.


  • IRS Tax transcripts will not be able to be received and this is a required condition to close/fund a loan.
  • HUD REO properties-Unless you have received HUD approval, these transactions will most likely not close.
  • USDA loans-The GUS automated underwriting system will be shut down, so there will be no way to get an automated approval.
  • FHA loans-If you do not have a case number your file will be placed on hold and no appraisal can be ordered.
  • Flood Insurance-If the property is in a flood zone, borrowers will be unable to obtain flood policy through FEMA.  Private flood insurance options are available, but they are pretty salty.  A lender will not close a loan without a flood policy if it is located in a flood zone.

Once again, there is NO SHUTDOWN at this time,  do not be alarmed, this blog is for educational information  only to help buyers and sellers understand how a shutdown would affect mortgages.

As always please check with your lender for answers to your questions concerning your mortgage loan.





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