With the recent government shutdown still in effect and no end in sight, many home buyers are wondering how this will impact their ability to obtain FHA financing and whether homes can be sold using FHA during this uncertain period. In response to the influx of inquiries, FHA has published several Q&A articles on the HUD website trying to address the most pertinent and common questions it is receiving pertaining to the shutdown. Specifically, these various Q&A’s address items such as:
• identification of what resources will still be available during the government shutdown;
• whether FHA will continue to endorse loans during the shutdown; and
• whether lenders can submit packages for condo approvals.
What is the overall message from these Q&A’s?  The basic message is this: The HUD offices will be operated by contract staff during the shutdown who will try to address various questions, but if the contract staff is unable to do so, the questions may not get answered until the government re-opens.  Additionally, because HUD staff will not be available to process FHA certification applications, any applications submitted during the shutdown will not be reviewed or processed until the government reopens.
What does all of this mean for condominium communities?  Generally speaking, it means if you are attempting to become FHA certified or re-certified, it may take longer than normal to obtain a response from HUD—specifically, it will likely take as long as the shutdown lasts, and then some time after that, for HUD to weed through its backlog of applications.

Elina B. Gilbert
2 responses to “Government Shut-Down and the FHA
  1. I have recently attempted to renew our HUD/FHA status; indeed, there is a limited staff on hand to answer questions, but any documentation must wait until the shutdown is over before it can be submitted. HOA’s that have been certified in the past have up to six months to renew after the expiration date on the HUD/FHA website.
    Let us hope that it doesn’t take six months to get things started again!
  2. Thanks for the info Elina,
    Another CR, another trillion.
    Not looking forward the changes that are coming to the housing industry to reel in that bad habit.
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