A Threatened Housing Market

Will the government shutdown stop me from buying a new home? The answer is YES & NO! The reality is many things in your life can and will change until a resolution is met, but is there a threatened housing market?

Yes, the government shutdown can stop you from buying a home in certain situations. The first one being if you are a federal employee you are probably on furlough, therefore no income to purchase a new home.  The longer the shutdown lasts the less stable the economy becomes. This could make for lay-offs for other businesses and most importantly higher prices on food and other necessities punching a big hole in your budget, ability to pay obligations, or add to your down payment.

No, the government shutdown won’t stop you from buying a home if you can easily qualify  but delays should be expected. Sellers and buyers will be postponed by the inability to verify tax records, social security numbers or interact with the FHA or Dept of Agriculture if applicable. Some lenders may delay approval of your loan depending on the current economic & unemployment trends. The most impact will be breaking the government shut down and dealing effectively with the debt ceiling that is looming.

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