How The Shutdown Could Affect The Housing Market

There are three ways Americans get home loans from the Federal Government: FHA, VA, and USDA loans. 

• FHA
• FHA lenders that have outside underwriting from Fannie Mae or Freddie Mac, banks must verify a borrower's income with the IRS. "But IRS operations are curtailed because of the shutdown, and the agency won't be available to handle the paperwork the banks need to close on the loans." says  Les Christie  @CNNMoney October 3, 2013: 11:29 AM ET
• FHA lenders that do their own underwriting will be able to move forward on their loans as normal.
• Locally this means that if you are currently shopping for a lender, you should be asking how they do their underwriting and how the shutdown is affecting them. 
• VA
• "The VA Home Loan Guaranty Program will continue to function as normal in the event of a government shutdown." Says the VA
• "The VA has identified the home loan program as a function that needs to continue operations despite a lapse in appropriations." Says  Chris Birk from Veterans United Network

• USDA
• "All USDA loans, also known as rural housing loans, will also be on hold because the USDA is shut down." Says  Emily Sinovic KATU News and KATU.com Staff