Surprising Effects of Government Shutdown On Loans

Surprising Effects of Government Shutdown On Loans

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As the government shutdown continues, national parks and other non-essential parts of the government are closed, including Joshua Tree. Now, the question becomes, is this affecting potential first time homeowners?

If you are a potential first time buyer who was thinking about using a federal housing association loan to give a down on a home, the shutdown may have made you a little nervous. However, Kristen Martinez, the President of Vanmar Lending in Palm Desert, says you have nothing to worry about. In fact, she adds, now is the time to buy.

“We were funding yesterday, we are funding today, FHA loans which is exciting,” she told NBC Palm Springs.

This is a shutdown that may have affected the National mall, national parks, and other government entities, but it is not one that has really affected first time buyers trying to get a Federal Housing Association loan or FHA loan.

“FHA allows buyers to come in with minimal down payments. At most you have to come in with 3.5 percent, but there are programs that allow you to come in with 1 percent, even a half percent down,” added Martinez.

Now here is where things get a little tricky.

“The only way that a file would be held up is if you are currently a government employee. Other than that, everything should be funding as usual.”

So is this the time to buy a home?

“Interest rates are still lower than they were 10 years ago for sure. So, you;re still getting interest rates in the 4’s, and it’s a great time to purchase a home.”

Well, that is only if you are ready to go house hunting.

“I think being a first time home buyer is nerve wracking anyway, but I don’t think there is anything to be nervous about. Everything is going as it was expected. So, it’s still working out for us I hope.”

For more information of FHA loans or home buying questions, visit https://www.vanmarlending.com