Why do we announce that FHA loans are available in 2019? At the time of this writing, the government shutdown is still in effect, and many government websites including FHA.gov and HUD.gov (FHA.gov redirects to HUD.gov) have an announcement stating that the sites themselves are not open for business.
Consider the quote from HUD.gov:
“Due to the lapse in Congressional Appropriations for Fiscal Year 2019, the U.S. Department of Housing and Urban Development (HUD) is closed. HUD websites will not be updated until further notice. For more information, see HUD Contingency Plan for Possible Lapse in Appropriations. “
But that DOES NOT MEAN that FHA home loans are unavailable.
FHA Forward Mortgage Purchase Loans Are Available In Spite Of The Government Shutdown
FHA mortgages are generally processed and serviced by the participating lender, and government involvement in the approval process may be needed in certain cases.
But for the most part your participating FHA lender is still able to accept your loan application and work on the loan. Your lender will tell you when there may be a government shutdown-related problem.
By the time you read this, it is entirely possible that the government may find some type of progress in ending the shutdown, and if that is the case this article will be obsolete.
But it’s just as likely that the shutdown could drag on for a time, in which case borrowers should know they do not have to think twice about approaching a participating FHA lender for help with a home loan. That help is available now, tomorrow, next week, etc.
There are certain things that may be affected by or delayed due to the shutdown including certain elements of the FHA housing counseling referral service, the ability to get a new condo project on the FHA approved list, but the basic procedures for getting your home loan processed are lender-based which means you can apply and move forward unless your loan officer tells you otherwise.
Certain FHA loan products, such as FHA Reverse Mortgages, may be more adversely affected by the shutdown than forward mortgage loans and situations that require direct intervention by the FHA or HUD may complicated by the current state of government affairs until a resolution is in sight.
You will need to discuss the specific type of FHA loan you need with a loan officer to see which FHA loans that are not purchase-based might be affected and how.
Look into your FHA loan options today and learn more about how you can start your journey toward home ownership.