Questions are floating around about whether the federal government shutdown will affect the housing market, which has made big gains on the road to recovery this year.
The U.S. Department of Housing and Urban Development said last week that it would stop working on loans backed by the Federal Housing Administration in the event of a shutdown.
Then the department changed its mind. Early this week, HUD said it would "endorse new loans under current multi-year appropriation authority in order to support the health and stability of the U.S. mortgage market."
For now, it seems like FHA loans and those administered by the Veterans Administration will continue to be endorsed.
"We're in good shape," said John Shamshoian, president of the Fresno Association of Realtors and owner of Realty Concepts in Fresno. "There is no effect."
But HUD did give a warning. The response time for loan approvals could slow down because of a limited staff. Most employees are on furlough.
Lenders should be able to get case numbers, the federal Credit Alert Verification Reporting System will be available to determine if a borrower has a delinquent federal debt, and the FHA will collect mortgage insurance premiums, said Lisa Sasaki, sales manager at Academy Mortgage in Fresno.
"A shutdown lasting a few days should only slightly inconvenience our operation in processing loans," Sasaki said. "However, a longer delay would have more serious impacts."
New home project coming to Dinuba
A long-awaited housing development surrounding a golf course designed by a former PGA-level golfer is finally coming to fruition.
No, it's not Running Horse, the defunct southwest Fresno project once courted by famed developer Donald Trump. This project is in South Valley at the Ridge Creek Golf Course in Dinuba.
The Dinuba City Council approved the site map this week and took a look at the first renderings and floor plans for the custom and semi-custom development on the city's western edge.
"The recession delayed the project but we feel the time is right now," said Mark Davis, managing partner of Ridge Creek Partners. "Dinuba is growing and there are no homes like this in the greater Dinuba area. The golf club has a great reputation and we will build on that."
Ridge Creek Partners is the developer. The builder is Ted Intravia of TTI Development in Los Banos.
The development will have two communities. The Golf Estates at Ridge Creek will be a gated community with 55 custom homes on lots ranging from 10,000 to 26,000 square feet.
The Golf Villas at Ridge Creek will have 115 semi-custom homes from 1,780 to 3,400 square feet. Buyers can choose from eight floor plans designed by Visalia architect Stan Canby of Teter AE. Prices will range from the $200,000s to $400,000s.
The project is expected to be developed in four phases. A boutique hotel and recreation center are also proposed for the community.
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