Government shutdown impacting local housing market

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by SHAWN CHITNIS & KREM.com

KREM.com

Posted on October 2, 2013 at 6:33 PM

Updated Thursday, Oct 3 at 3:53 PM

SPOKANE, Wash. -- The government shutdown is impacting the housing market in a variety of ways.

Experts said the shutdown could have a domino effect on the housing market. Some of the more popular loans for buying a home require a government service or funding. All of those government supported loans that haven't been verified cannot be processed right now.

These include VA, FHA, and USDA loans; funding that comes from various government agencies. You can still apply for those loans and if your lender has already verified it, you won't be affected by the shutdown.

Buyers who are self employed or work for the government may also have to wait because part of approving their loans requires contact with government agencies that are not open.

There are also benefits to some buyers because of the shutdown. If you can buy a house without government assistance, this could be one of the better opportunities this year. Experts say rates are incredibly low.

The number of loans that will need to be processed will add up each day the government does not re-open. This will force more people to wait to get a new home.

If you decide to buy a home in this market, it is recommended that you talk to a realtor or lender to find out what impact the government shutdown will have on you.

 

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