Thursday, October 3, 2013

How Will the Government Shutdown Affect Mortgages and Home Loans in Indianapolis?

My thanks to Kim Hoffman of Academy Mortgage in Greenwood, Indiana for supplying this information on how the shutdown of the U.S. federal government will impact home loans and mortgages for people across Central Indiana.

Kim says that a shutdown of only a few days will have little impact on individuals working through the loan and mortgage process in the Indianapolis area. However, a closure of more than a week is likely to affect operations for Academy and other mortgage providers.

She and I will offer further updates on that, should the government shutdown stretch more than a week. - Lisa Parrett 

The Federal Government shutdown may affect certain home loans in the short term.

Note: The biggest issue will be with the ordering of Tax Transcripts (4506-T) from the IRS. With IRS offices closed, this will impact all loan types.

FHA Loans: The approval process may be slowed due to limited FHA staff to respond to questions and complete reviews.

VA Loans: With the Department of Veterans Affairs continuing to operate as normal, VA Loans will not be adversely impacted in any way.

USDA Loans: No new loans or guarantees will be made.

Internal Revenue Service: The IRS will not process any forms, including tax transcripts, which are required for loan closing.

Social Security Administration: The SSA will likely not be able to verify Social Security numbers, which is required for loan closing.

FEMA Flood Insurance: It is likely that mapping issues or amendments will be impacted.

Fannie Mae and Freddie Mac: Fannie and Freddie will not be directly affected, except to the extent that they rely on verification and other functions of HUD, the IRS, and the SSA.

Kim's Contact Information

Kim Hoffman
Academy Mortgage
Loan Officer
1634 West Smith Valley Road 
Greenwood, IN 46142
(317) 471-8900

This completely renovated Broad Ripple bungalow is move in ready. You can enjoy all the conveniences of a low maintenance home, new windows, roof, AC and furnace, plus the benefits of a great location. The bright, sunny interior has new bamboo flooring in the living room, dining and bedrooms. Enjoy the well maintained beautifully landscaped private back yard, while grilling on the patio, then take a stroll up the Monon. The newly finished basement is ready for your choice of paint color.

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