Home purchases put on hold from government shutdown - WFLA News Channel 8

Home purchases put on hold from government shutdown

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RALEIGH, N.C. -

For hundreds of people across the state, buying that "Home Sweet Home" has been put on hold because of the government shutdown.

"For the moment, it's a real scare," said Brian Grubbs, president of Raleigh Mortgage Group.

Through the U.S. Department of Agriculture, the government offers low-interest loans to people in rural areas. But since it's a federal government program, the shutdown has the entire program on hold. No USDA loans are being processed.

"That may postpone their closing for weeks or months," explained Grubbs. He said some home buyers who were less than a week away from closing on their homes are now stuck waiting.

"Our current percentage of USDA production is about 20 percent of our total loan production," Grubbs said. "So we're going to have a significant impact in our pipeline this month if things don't pick up soon."

The shutdown could also end up costing home buyers more money if they want to keep their initial interest rate.

"We have to continue to extend the lock on their loan, which would cost them money out of their pocket," Grubbs said.

The USDA home loan website is also unavailable. When a user navigates to the site, the homepage says ,"Due to a lapse of federal funding this site is not available."

A recorded message on the phone number also said the employees have been furloughed and do not have access to email or voicemail.

Grubbs said if someone is in the process of buying a home and considering using a USDA loan, they should go ahead and get the process started. He said people currently waiting to have their loans processed will be helped on a first come first serve basis.

Until then, buyers, sellers and mortgage companies can only wait until the government shutdown is worked out.

"We hope this will be short lived and will blow over very quickly, but until then, we hurry up and wait," Grubbs said.

Jonathan Rodriguez

Born in California but growing up in South Carolina, Jonathan Rodriguez joined WNCN in June 2013 as a digital journalist. More>>

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