January 28, 2019
Yes, the record partial government shutdown ended late last week. Regardless of who “won” or who “lost,” in a few weeks the whole thing could happen all over again. So it is a good time for Orion’s brokers to take a look at it, hoping, of course, that history doesn’t repeat since plenty of citizens in the private sector were the ones who lost.
All local housing markets where Orion’s brokers operate were impacted by the partial government shutdown. Several types of mortgages are government backed. Some were okay to be processed, but others were not. Lots of our brokers know that Federal Housing Administration (FHA) and Veterans Affairs (VA) loans were still good to go, but USDA rural loans were, and are, on hold until further notice. A USDA loan allows people to buy a home with 100 percent financing in areas that are considered rural.
Unfortunately for borrowers, some USDA clients were under contract for a long time. Some had given landlords notice, and new tenants had moved into re-rented rentals. The buyers don't have a place to live now and have to move into temporary housing and that can change their financial picture.
Other groups impacted were federal contractors and federal employees. They were at a standstill and couldn’t finance a home until they begin being paid again.
Fortunately, Orion has been lending throughout the partial shutdown, and will continue to do so regardless of the government’s behavior. We know that our broker’s clients, Realtors, brokers, title people – the whole food chain – rely on us since we have a wide range of products. And are dependable. For many it will still be a waiting game. Many of Orion’s brokers are seeing situations where the seller is waiting for the house to close and buyers are waiting for everything to happen. Let’s hope it doesn’t happen again in a couple weeks.