JOHNSON CITY, TN (WJHL)- If you are in the market to buy a home during the government shutdown, it’s important to know there’s a major loan currently on hold and that it could impact you signing on the dotted line.
Affiliate Broker and realtor at Keller Williams in the Tri-Cities, Lincoln Walters, explained Thursday that USDA home loans are currently at a standstill to the government shutdown.
Walters said the USDA home loan is one of the most common they see, especially among first time buyers, and that it is a 100% government-backed loan.
“If you don’t have, say, money down for a conventional loan or quite the credit score, you can get 100% and still get into a new home…if you are outside of city limits, if you are in the county somewhere, the majority of those areas are going to be USDA eligible, even if you can apply and get accepted for a conventional loan, it’s pretty enticing to go with USDA with 100% down and not have to take that money out of your bank account,” Walters said.
While he didn’t have a specific number of home buyers impacted, he did say they have seen home buyers seeking a USDA loan, who are now essentially in limbo due to the shutdown.
“I know there’s several that are on hold waiting to close, the ones that are in processes already are going to be delayed and the ones that were wanting to go shopping with a USDA loan, can’t even really do it right now because they are not accepting any applicants,” Walters said.
Walters also said he’s worried if the government shutdown lasts long enough that, “buyers that are under contract, the sellers won’t want to extend the contract anymore because they will be able to find someone with a conventional loan…”