Gov't Shutdown to Halt FHA Funding

[J Scott]

Just fyi to anyone who may be planning to buy or sell a property in the near future using FHA financing, if the government shutdown happens, I've read that FHA will not be funding loans during the shutdown period.

Just wanted to throw that out there for anyone who may need to prepare...

[Ophelia Nicholson]

Hey J Scott,
I think you have it wrong- I work in the mortgage industry. If the governmenet shuts down then FHA will not insure the loan but FHA doesn't fund the loan- The bank does they just wont be able to request FHA insurance and will have to wait until the government opens back up to get the loans insured. Insurance typically happens after funding anyway so it will just be much longer after funding.