Mortgage for federal employee during government shutdown

Member since 2018 · 12 posts · 8 votes

Hello! I'm a federal employee and am going to be doing a 1031 exchange. I was wondering how a potential government shutdown would affect my ability to get a mortgage. In 2019 Congress passed a law guaranteeing back pay. My concern is how my income would be calculated if there is a temporary stop in pay. I plan on conventional financing, but may pivot to a DSCR if necessary. Thank for any insight!

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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
3y
Hard to say for sure based on the limited info provided, but conventional underwriters/lenders look for consistency and the likelihood of the pay to continue. If there was a stop in the pay, an underwriter would likely want some sort of documentation showing the amount of pay you'd receive, schedule of deposits, how long it would continue, etc. If for some reason, DSCR is a good backup plan since you wouldn't need to provide income/employment documentation.
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Alex Olson
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
3y
@Michael Moy Has your downleg closed? If not, just make sure it closes here after the shutdown has passed. It won't last longer than 34 days (longest ever was 34 days and was a complete disaster - I doubt they want to do this again).
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Michael Moy
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Member since 2018 · 12 posts · 8 votes
3y
Quote from @Alex Olson:

@Michael Moy Has your downleg closed? If not, just make sure it closes here after the shutdown has passed. It won't last longer than 34 days (longest ever was 34 days and was a complete disaster - I doubt they want to do this again).

No it hasn't. I think I'll be in the clear this time around, but with as often as we face shutdowns it would be nice to know the ramifications.
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