The Government shutdown effect on the housing market

Local News

The partial government shutdown is effecting things like state and local farm service centers, small business owners and food inspections.

Annette Yorks, Realtor for Perry Wellington Realty, in State College, says two main impacts the government shutdown is having on the housing market, is buyers and sellers not being able to finish deals, or refinance a mortgage.

Non-essential employees working on loans from the Federal Housing Association are furloughed right now, because of the government shutdown. 

That means there are not as many people available to process loans.  

“If you are working with FHA for your mortgage, your mortgage will take longer,” Yorks said.  “That’s what we’re finding, delays.”  

Other types of loans are getting slowed down too. 

“Right now, USDA is not doing any new loans,” Yorks said.  “If your loan is in process, there could be an issue.” 

But it’s not just people trying to buy or sell a home that are being impacted. 

“FIMA is not taking new applications,” Yorks said.  “So, that can be an issue for somebody that maybe needs a new flood insurance quote.” 

The problem is, loans from the F.H.A. or U.S.D.A. are the only way some people can buy a home. 

“The only other option we know right now seems to be moving smoothly is your conventional, type loan,” Yorks said.  “But for some first time homebuyers they don’t have enough money to put down to do a conventional type loan.” 

If you’re a seller and you’ve agreed to an offer, and the buyer uses F.H.A., there will be some holdups in the closing of the house, because of the lack of workers to process it.

Yorks says the housing market in State College is slow this time of year.

She says if the government shutdown lasts two or three more weeks, she”l be concerned about what will happen to the local housing market.

 

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