Government shutdown, shuts down part of the local housing market - Fox 28: South Bend, Elkhart IN News, Weather, Sports

Government shutdown, shuts down part of the local housing market

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Some first time home buyers are having to hold off on moving in while the government decides when they'll get back to work.

"It threw a wrench in everything," said Shelly Brigham, a Napanee resident.

The Brighams were supposed to be finalizing their paperwork for their new home this week. Key phrase "supposed to", because of the government shut down they don't know when they'll get to move in.

All they needed to seal the deal was their USDA Rural Development Loan to be approved, but that office closed its doors because of the shut down.

"You know there's a domino effect with that," said Michael Brigham. "The sellers of the home that were buying are also waiting so it's effecting them and their family as well."

The Rural Development program helps family make their down payments on homes in small communities like Napanee and Wakarusa. Hahn and Associates Broker Laurie Sumpter says she has eight other families waiting on this type of loan. 

However, because of the shutdown she has no idea when that paperwork will be finalized.

"It maybe a week it, it maybe two weeks," said Sumpter. "You just don't know, but it puts everybody on hold."

Sumpter says the shutdown could also effect the low interest rates that home buyers thought they were getting.

"We don't know how long these interest rates are going to stay under 5 percent," said Sumpter. "We've been so lucky the last 3-4 years. It's been wonderful."

The Brighams say they are not too concerned about their interest rate, but they say they are worried about how long the shutdown will continue.

"I'm hoping [the politicians] get back to work tomorrow," said Michael, as his wife began to laugh.

They never thought the government would be shutting them out of their own house.

"I'm to the point where I am so frustrated I'm just ready to scream," said Shelly. "I've had enough, I'm ready to move, I'm just done."

Sumpter added, that not all government housing loan programs have been shutdown quite yet. People who have already filed FHA loans might still get those approved. However, if this government shutdown continues, it will not be long before that department locks up shop too.

According to Sumpter, one of the problems with the USDA loan program is that they already took awhile to approve. Now that other people will be waiting to file their paperwork with the shutdown is in effect, the realtors I spoke with expect it will take even longer to approve. Especially since the department will get more backed up with paper work once they reopen.

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