By: Fred Arnold
The partial government shutdown is starting to impact housing, however it is not for the reason that most people think. Many people believe that with government workers on hiatus and the threat of the U.S. defaulting on their debt payments that people will delay their decision to purchase or sell their home.
Although there may be some truth to this, at the present time this is not where the greatest concerns relating to the future health of housing exists.
The first place the shutdown is having an impact is with FHA loans. These types of loans require the government to issue insurance to the lenders that are closing these loans. With the government shutdown happening, currently the Federal Housing Administration is working with a skeleton crew attempting to remain caught up on all the requests for insurance.