Federal Government shutdown and their effect on FHA, VA, USDA loans in Kentucky
This morning at 12:00am the Federal Government was shut down.
The following is what we know, so far, about what the impact will be to our loan production efforts.
FHA- While the FHA offices are open with a reduced staff, the automated systems are
currently up and running. We should be able to obtain case numbers and perform other
functions that require the FHA Connection website.
VA- VA has notified lenders that they will be operating at full staff and as usual to serve
USDA– USDA offices are closed during the shutdown. No conditional commitments can
be obtained and Crescent cannot close loans without an executed conditional
commitment from USDA. Also note that GUS is not available during the shutdown and
we will be unable to make corrections in the automated system.
IRS – The IRS offices are also closed. We will submit 4506T requests to our vendor as
normal to be delivered to the IRS when as they reopen.
Your business is very important to us and we will work to provide you with updated
information when it becomes available.
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- Government shutdown affects on USDA, FHA, VA, Rural Housing, KHC and Fannie Mae Mortgage loans in Kentucky (mylouisvillekentuckymortgage.com)
- Kentucky FHA Loans and the Government Shutdown (louisvillemortgageguide.com)
- FORT KNOX, Ky. Civilians Sent Home (kentuckyfirsttimehomebuyer.com)
- Kentucky FHA Loans and the Government Shutdown (kentuckyfirsttimehomebuyer.com)
- Investment Home Loan (louisvillekymortgage.net)
- Two Credit Unions Offering No Money Down Mortgages (louisvillemortgageguide.com)
- Why Do I Need an Agent when I Have the Internet? (louisvillekymortgage.net)
- Ditch your spouse when buying that house – NASDAQ.com (louisvillekymortgage.net)
- USDA Loan Eligible Rural Areas in Kentucky Counties including the cities of Bardstown, Ky, Elizabethtown, Shepherdsville, Shelbyville, Frankfort, Burlington, Nicholasville, and Independence Northern Kentucky Have Changed effective October 1, 2013 will (kentuckyusdaloan.com)
- Kentucky Rural and Usda Eligible Rural Area Change Reminder (mylouisvillekentuckymortgage.com)
DIFFERENCES BETWEEN THE SECTION 502 GUARANTEED AND DIRECT LOAN PROGRAMS FOR RURAL DEVELOPMENT RHS
There are several other Section 502 loan programs, but the only one that approaches the guaranteed program in number of loans made is the Homeownership Direct Loan Program
This program once accounted for almost all the Section 502 loans, but the number of guaranteed loans has greatly increased in the last few years. In Fiscal Year 2001, the guaranteed program obligated approximately $2.3
billion for 29,326 loans, while the direct program obligated approximately $1.07 billion for a total of 14,789 loans. The important differences between the Section 502 guaranteed and direct loan programs are as follows:
The lender for Section 502 guaranteed loans is a private savings and loan institution, bank, or mortgage company which also handles all the loan servicing. The lender for the direct program is the Rural Housing Service; Rural Development handles the servicing.
Income levels for Section 502 guaranteed borrowers are capped at 115 percent of the area median income. Income levels for the direct program must be no more than 80 percent of the AMI. Payment assistance subsidy is not available
through the guaranteed program. Payment assistance, which can reduce the interest paid on the mortgage to as low as 1 percent, is available for borrowers in the direct program and is based on the borrower’s income as a percent of AMI.
Borrower protections differ between the programs. Applicants for guaranteed loans do not have the rights of moratorium or of appeal that accompany the direct program. Also, in the case of default, Section 502 guaranteed loans are liquidated by
the commercial lender, while direct loans are liquidated by the government