As of today, January 22, 2018, the United States government is still shut down due to the failure of Congress to provide funding for the day to day operations of the government.

What does this mean for home buyers?

No flood insurance

Unless you are assuming an existing policy, flood insurance will not be issued during the shutdown. If the property you are purchasing is in a flood zone, this will delay your closing until funding is renewed.

No USDA loans will be funded

Also known as RD (rural development) loans, this is a popular mortgage choice for first time buyers in West Jefferson parish. During the shutdown, no funds will be issued, including those for already approved buyers.

Delays in loan processing

Part of the standard mortgage loan processing procedure is to request tax return transcripts and the verification of Social Security numbers. Both the IRS and the Social Security Administration have shut down and those verifications are not possible to get. If your lender requires this information for loan approval, expect your closing and/or pre-approval to be delayed as well.