Federal Shutdown Puts Stress On Rural Development Home Loans | WGLT

Federal Shutdown Puts Stress On Rural Development Home Loans

Jan 15, 2019

The leader of the Bloomington-Normal Association of Realtors says the government shutdown has little impact on local home loan programs.

BNAR President Danell Moberly
Credit Bloomington-Normal Association of Realtors

BNAR President Danelle Moberly said the number of pending home loan fails over the 25-day shutdown is actually lower than over the same time frame, with 109 fails compared to last year’s 121.

“We haven't seen a huge impact in our local market,” Moberly said. “So as long as it doesn't continue for an extended long period of time, then I don't see that impact for our local Realtors here.”

The only loan program seeing an impact locally are U.S. Department of Agriculture loans on rural development, but she said those loans could still close on time if the government shutdown ends swiftly.

“The USDA loan is the one that is 100 percent you don't need a down payment,” Moberly explained. “So of course that is a very popular loan. But at the same time, obviously we'd rather get you closed and into a home. So if that's not going to be the case where the shutdown doesn't stop, then we need to move you to a different program.”

Interested residents can still apply for USDA loans throughout the shutdown period.

Federal Housing Administration and Veterans Affairs home loans have not seen an impact locally and are still closing on time. Once other loan programs are affected, Moberly said the impact of the shutdown will become more of a concern.

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