VA loans

The VA Loan Program: Most Offices Running During Government Shutdown

October 10, 2013

The VA Loan Program: Most Offices Running During Government Shutdown

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With headlines about veteran benefits and the government shutdown looming, many wonder if they will continue to get their VA benefits while the government is “closed”. What’s realistic to expect during the shutdown? At the time of this writing, there is a controversy over certain VA death benefits that may be withheld, and until recently there was some question as to whether military members would actually receive their October 15 paychecks.

And then there’s the message the Denver VA Regional Loan Center issued, stating, “Due to the current Government shutdown, the Department of Veterans Affairs (VA) Denver Regional Loan Center will be closed for public contact beginning Tuesday, October 8, 2013, until further notice.”

But that statement does not mean the Denver RLC isn’t working–it’s just not open to the public. “Although the building will be closed to walk-in customers, the VA Home Loan Program will operate as normal during this time. Since Loan Guaranty systems are automated, our Stakeholders and Veterans should not experience a delay in services provided by the VA Loan Guaranty division.”

Borrowers should not expect an interruption in their VA home loan benefits processing over all–the VA loan program continues as it always has, even during the government shutdown crisis. Some borrowers–a small percentage–may experience longer processing times when trying to get replacement discharge paperwork that is required for a VA Certificate of Eligibility. But for those who don’t need to apply for a replacement DD Form 214, the VA COE process should go as normal, too.

The Department of Veterans Affairs official site may not be updated during the government shutdown, but your VA loan applications will still be processed, as will your COE application to get things started. Why does the VA continue to operate when other government workers (including many at the IRS) are not on the job?

The Department of Veterans Affairs is funded through other means than those directly affected by the current funding crisis. There is still budget money available for the VA, hence the offices remain open.

Do you have questions about VA home loans? Ask us in the comments section

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