How will the shutdown affect the real estate market in Nashville, TN?
- If you are an affected federal employee, you may not be able to close on your home because you are now unemployed.
- If you are using an FHA, VA or Rural Development loan you may not be able to close due to the department shutdowns.
- If you need flood insurance, you will not be able to close on your loan. All flood insurance is thru the federal government.
FHA loans are 30% of the mortgage market. Some 800,000 federal employees are expected to be furloughed. Some federal employees will be on the job. They are considered to be necessary for safety of life or protection of property. While the shutdown is mostly bad news, one positive thing that may happen is mortgage rates might drop.