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Profile picture for gchope2k6

Furloughed after loan approval, can we still close?

Got approved for a conventional home purchase loan, 33% downpayment, closing is this week. Got a commitment letter contingent upon employment verification. Working for a private company who is a government contractor. Due to the shutdown, we've been furloughed until government reopens... The employment verification did not happen yet, technically still employed although on leave without pay. Can we still close this week? What happens now? Can we lose the house and the deposit? Thank you.
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October 05 2013 - US
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Replies (5)

By conventional I assume you mean it's also conforming; if so, Fannie Mae has addressed this in their lender letter LL-2013-08:

Fannie Mae already allows the verification of employment to happen after closing and up to delivery of the loan. You should still be able to close if your lender has no additional overlays to Fannie Mae guidelines. 

Show your lender the letter and see if they will adhere to Fannie's guidance on this. 
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October 05 2013
Profile picture for cul8er6
We're in the same boat. Will filing for unemployment benefits during the furlough period impact the approved loan and closing? Will they show on the final credit report?
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October 10 2013
Profile picture for cul8er6
More info: just been furloughed and have closing next week, loan is approved, employment was verified. Should I tell the lender? Is it fraud not to say anything, as I am still employed in the same position, just furloughed until the government reopens?
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October 10 2013
Profile picture for user45791514
We live in a military town, so my loan officer and everyone at Wells Fargo already knew. Their only question was which boat my husband fell into:

A. Not furloughed
B. Furloughed, but returning to work on Monday after they ordered DoD employees back to work
C. Stay home until the budget mess is fixed

Employment verification was already done and we happened to be in the boat where he was ordered back after 4 days at home. There have been no delays and we're hoping to get our clear to close today.
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October 11 2013

I know in my area, the lenders are on top of the minute to minute changes in this regard with the shutdown of the government, so your lender should be able to provide you up to the minute guidance as to whether you will be able to proceed to closing.  Good luck!

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October 11 2013
 
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