Government Home Loans and the Shutdown

by : Editorial Staff

It appeared that government backed loan programs like FHA home loans were headed for a shutdown along with national parks and other government entities but the information now is that they will stay open for business and continue to process the loans they have in processing and also take on new ones throughout the shutdown.

HUD is cautioning that things will slow down however, as the staff will be limited. HUD remains committed to assisting in the recovery of the housing market through FHA and other programs.

FHA loans accounted for about 45% of the loans that were granted in 2012 so it is important they stay the course to help all those individuals that may not qualify for conventional loans. FHA loans, recently known as bad credit home loans, are a big driver in the housing recovery as they provide backing to lenders that are willing to take on these poor credit mortgages.