Shutdown Causing Delays For Some Closing On Homes - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Shutdown Causing Delays For Some Closing On Homes

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MASON, Mich. (WLNS) - Americans across the country continue to feel the effects of the current, partial government shutdown that's lasted over a week.

Congress has not come to any agreement and because of that, everyday people continue to feel the effects.

 

 

Now in day number eight of the government shutdown, the effects are being felt in industries across the board.

 

Jeff Thornton, who works with Coldwell Banker Hubble Briarwood, says every day it continues, closing on a new home becomes a little tougher.

"There's three or four different areas where it's being impacted, the most obvious is rural development," said Thornton.

Rural development is a type of mortgage Thornton says many home buyers in mid-Michigan apply for. It allows people to get a loan from the bank for a house in rural areas and doesn't require them to put a down payment on the house.

There's just one problem. "If you're applying for a rural development mortgage, nothing's happening. You're dead in your tracks right now," Thornton said.

That's because it's the U.S. Department of Agriculture who is responsible for doing background checks and going through a home buyer's tax history.

Workers there, like so many others across the country, are furloughed.

Even home buyers whose loans have already been approved have to finalize them at the USDA office, but there's nobody there. And there won't be as long as the government is shut down.

 

"Now if you have a rural development mortgage in process, you don't even know when you're going to be able to close because they're not looking at it," he said.

For now, Thornton says many of these houses on the market are eligible for rural deveopment mortgages, but before homeowners apply and buy, he's waiting on Congress to do its part.

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