USDA Loans Snagged by Gov’t Shutdown

A quick update to the report we shared September 29th involving USDA’s no-down-payment loans for homes in the Birmingham and Shelby Co. area…

While USDA has announced that its loans will continue beyond the earlier announced September 30th cutoff date, the Agency now says processing of all loans is frozen because of the federal government’s October 1st shutdown.

This also means that the extension beyond September 30th is on hold, as well, until Congress gets the government going again.

If you’re wanting to buy a home with no-down-payment financing in the meantime, we’d recommend contacting some of the Lenders we know in the area who have experience helping people obtain these kind of mortgages and who know about possible alternatives to USDA.

Self-employed people who are applying for loans for home purchases are likely to be affected by the shutdown, as well.  That’s because Lenders won’t be able to get tax transmittals from the Internal Revenue Service to help verify income.