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There are three big categories not impacted by the closure.
* Social Security
* Medicare and other entitlements will continue without interruption.
* Law enforcement, the military, intelligence agencies and foreign embassies.
A little over 800,000 Federal employees are being furloughed. Because of this you may have a delay in your home loan. This will depend on the type of loan you are receiving or documentation you need verified.
About 1.4 million active-duty military personnel must remain on the job but won’t get paid until a new deal is signed into law. Active National Guard units also must continue to work. Most civilian employees of the Defense Department face furloughs.
……………..and possibly you as you go through the home loan process.
If you are employed by the federal government and your employment is directly impacted by the shut down, you must be back on the job as confirmed via verification of employment (VOE) dated within 10 days of funding.
The IRS will not be processing these forms. Most loan types require tax transcripts. If you are self-employed they are always required. For all FHA, VA and FNMA loans requiring transcripts, funding is not to occur until such time as these items are provided.
Some lenders are waiving the 4506 & 4506T up front. So check with your loan officer to see if this will be an issue.
The Social Security Administration will not be verifying Social Security numbers. There could be delays if you cannot verify your Social Security number. Even if you provide a Social Security card, some lenders require a 2nd verification from SSA.
Because Federal requirements permit only essential staff to work during a Government shutdown, just over two percent of HUD’s Office of Housing will be working.
However, FHA loans will not be significantly impacted. HUD issued a memo to banks and lenders explaining that daily operations will continue.
How will this affect VA Home Loans?
Even though a little over 7,000 VA employees are furloughed the VA has said there will be no interruption to any VA Portal or loan guaranty functions. I would still anticipate a slight delay. You will still be able to receive your Certificate of Eligibility.
All VA medical facilities and clinics will remain fully operational.
Visit http://www.va.gov/opa/docs/Field_Guide_20130927.pdf for the VETERANS FIELD GUIDE TO THE GOVERNMENT SHUTDOWN. This gives a list of all VA facilities and operations that will remain open and what will be closed.
USDA will not issue commitments, nor will they guaranty loans at this time. If USDA did not already issue a conditional commitment, you must wait until funding legislation is enacted before you can close.
Conventional loans including Fannie Mae and Freddie Mac should not be delayed unless your loan requires a 4506 or Social Security verification. HARP and HomePath loans should not be affected.
CHFA will have no delays except for third party delays like the 4506 and SS verification.
Most CHFA loans are underwritten to FHA guidelines and the CHFA Advantage 3% down no MI program is underwritten by Fannie Mae guidelines. All CHFA loans are underwritten by the lender and not CHFA.
DMMMAP will have no delays. This is a 4% grant given for down payment and closing costs for home purchased in Denver, Arvada, Aurora, Boulder, Brighton, Centennial, Dacono, Edgewater, Englewood, Golden, Lakewood, Littleton, Parker, Sheridan, Westminster, or Wheat Ridge. The loan is underwritten to FHA guidelines.
The SBA will not initiate new loan guarantees during the shutdown.
For the most part it will be business as usual. We are keeping a very close eye on what is happening and we will do our absolute best to close your loan to the best of our abilities.
Mortgage Loan Officer
Does Your Credit Score Affect Your Homeowners Insurance Cost
+Carrie Van Brunt-Wiley Editor of the HomeInsurance.com blog provides tips for consumers on a wide variety of topics ranging from home maintenance to insurance shopping. Below is a great article by her.
Your credit score and your insurance payments- what’s the connection?
You’re likely not surprised when your loan officer asks for your social security number- a thorough credit check is standard when applying for a loan. However, many consumers are caught off-guard when a homeowners insurance agent asks for their social security number. It’s widely debated, but quite commonly practiced- for an insurance carrier to use a customer’s credit score to determine their insurance premiums.
What does your credit score really mean to your potential insurance carrier?
While many businesses will use a consumer’s credit score to determine eligibility for a line of credit or to discern whether a deposit should be held for an advance of services, insurance companies actually perform a different type of credit inquiry that they use for a very different reason.
A “Soft” Credit Check
First and foremost, it’s important to know that when an insurance company runs your credit they are actually performing what is called a “soft” credit check which accesses only your credit score and is not reflected as an inquiry on your credit report. As you probably can surmise, this is different from a “hard” credit check that a lender, for example, may run which does show up on your credit report as an inquiry.
Since credit inquiries from “hard” credit checks can hurt your overall score it’s good to limit these types of credit checks when shopping for a mortgage, for example. However, since insurance carriers only perform a “soft” credit check you can feel free to shop for multiple insurance quotes without worrying about hurting your credit rating.
What they use it for
Here’s where a lot of confusion, and sometimes even frustration, can set in from a consumer’s perspective. Once an insurance company has your credit score, they use it (along with many other factors about you and your home, car, etc.) to assign you an “insurance score”. This insurance score reflects your potential risk to the insurer.
The insurance carrier then takes your risk potential and calculates your premiums. The more risk you pose, the higher your premiums will most likely be. This is where the real question comes in:
What does poor credit history have to do with my potential to file a claim?
If you’re asking this question, you’re not alone.
There is much debate over the use of credit scoring as a way to determine risk, and therefore assign rates to insurance consumers. However, insurance companies defend the practice saying that studies have shown a direct correlation between a person’s credit score and their likelihood to file a claim. Therefore, consumers with a lower credit score often pay higher rates for insurance.
Whether you agree with the practice or not, qualifying for better insurance premiums is just one other way that you can save money by keeping a good credit rating.
This article originally posted by Keeping Current Matters at kcmblog.com