New Homebuyers On Hold Until Government Shutdown Ends
Lynchburg, VA- The partial government shutdown is affecting a lot of government services and employees. Turns out, it's affecting new homebuyers too. But, it's mostly just impacting those who haven't closed on their loans yet.
For those seeking government loans, it will close the door on their home buying process, affecting realtors and home sellers too.
We're told the shutdown really puts the brakes on USDA home loans, a common one for our area. But even if you're seeking another type of government loan, you may be in for a wait.
"Unfortunately there's not a whole lot that we can do for our clients right now," said Betsy Ferguson, a realtor with Century 21.
Ferguson says thanks to the government shutdown, a lot of her clients are hitting a brick wall in their quest to get under a new roof.
"It's going to halt the entire process and it's just going to be a standstill and a waiting period. And loans won't move any further," she said.
Ferguson says most homebuyers in this area take out a USDA loan; a loan that's now on hold. But, it's not only USDA loans that are frozen, it's any kind of loan, government or otherwise, that requires your tax history.
"If anyone needs to contact the IRS for past taxes and paperwork, which is usually required for anyone to have a loan process, there again you're going to hit a wall because the IRS is also closed down," said Ferguson.
Luckily Ferguson's client, Dawn Talley, managed to dodge that brick wall. When they closed on her new home, Talley didn't even know she had a near miss.
"When we closed they kinda told us you know, everything that was coming down the pipe from the government and everything," said Talley.
Now she and Ferguson are breathing a sigh of relief, having made the deadline that Congress couldn't.
"It was processed and confirmed Friday and the house closed yesterday using a USDA loan so we were very happy that they got in right at the 11th hour before the shutdown happened," said Ferguson.
"We were really grateful to be able to get that in at the last minute," said Talley.
Ferguson says if you're in the process of buying a home and you're locked into a contract already, you don't have to worry about losing the house. The home buyer, seller and realtor will just have to wait out the shutdown to close the deal.