Government shutdown stalling housing market? Some loans affected - FOX 10 News | fox10phoenix.com

Government shutdown stalling housing market? Some loans affected

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GOODYEAR, Ariz. -

It's a goal for a lot of people. Owning your own home, a piece of the American dream. But for some this government shutdown is preventing people from achieving that goal. Turning their dream into a nightmare.

Because they've used a government loan, like an FHA, VA, or USDA loan to buy their home. Because of the shutdown many buyers are in a holding pattern, waiting to for people to come back to work to approve their loan.

But there is some hope.

A family of 9 is waiting to get the key to this Goodyear home. They've been waiting for nearly two months.

Realtor Whitney Yates and her clients were just about to close on the deal with a VA loan when the government shut down.

"This family is renting and their kids started school in this district so now the mom is getting a notification from the school that they need to get a variance or move into this house," says Yates.

The majority of mortgages are not affected by the shutdown because, for the most, the process is automated. But in some cases, a person must be brought in.

"You can't get a hold of someone to verify tax information. So some lenders are bypassing it and allowing the loans to still go through without it, as long as it is perfectly clean case, but if you filed for an extension or had any issue then you are going to have a holdup."

In more rural areas of the valley, potential homeowners looking to get a USDA loan are out of luck. The USDA is shut down. the website isn't even up and running.

"That is at a complete standstill right and I do have buyers that use the USDA loan and they can't even begin the process now. You can't even get a loan application now," says Yates.

For now, Yates says her client and the seller understand and are being patient. But it's not clear how long this shutdown will last.

Frequently asked questions about the effect the government shutdown has on FHA loans: http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ

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