Government shutdown halts USDA housing loans and grants
COLUMBIA- The United States Department of Agriculture Rural Development is a government agency that provides federal housing loans and grants to prospective buyers. As a result of the recent government shutdown, this agency is now temporarily closed.
This means that they are not providing these services, and people are now forced to consider alternative options.
Jeff Rackers, mortgage loan officer at USA Mortgage, says finding funding for these loans has been tough.
"It is making it impossible to get the loans funded or to go through so right now we're having to push the closing dates back," said Rackers.
However, he recommends that prospective home buyers continue with the buying process.
"Well, the only step that they have is they can go ahead and enter into a contract, but they need to extend the closing dates out. I would do 60 days minimum. It is a really, really, hard thing to project when this is going to come to an end."
Rackers believes that we'll see more of an impact after the shutdown, due to backlogging pending sales.
Deborah Graves, Vice President of Central Bank, says this isn't anything new.
"This is not the first time we've had a government shutdown. It's just the fact that it's a little longer, makes that potential home buyer nervous, but we'll work really hard to come up with alternatives for them. This is something outside of their control, and outside of our control," said Graves.