New homeowners stuck in limbo through government shutdown

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by Jasmine Huda / News 4

KMOV.com

Posted on October 7, 2013 at 10:55 PM

Updated Saturday, Jan 4 at 1:18 PM

 (KMOV) – The effects of the shutdown are hitting more area residents as well as federal employees.

Some homebuyers can’t close on their homes and that can have a domino effect across the entire housing market and keep people from moving in.

The USDA can’t process most of its loans due to the shutdown. Some homeowners are having to wait, keeping them from moving in.

Miriam Gonzalez and her husband, Umberto say they had plans to move into a brand new home in a Shiloh neighborhood. “We were supposed to close on the 26th. September 26,” said Gonzalez.

Anyone waiting for a federal housing administration or FHA Loan could be in for a delay but the impact is far greater for the USDA’s rural loan development program. The USDA website said it all, due to the lapse in federal government funding, this website is not available.

“The USDA on the rural development program is effectively shut down, entirely,” said Joseph Bayer Jr. with First Integrity Mortgage Services.

He said with the paperwork process at a halt, the ability to close on a home gets more frustrating for people like Gonzalez.

“If it goes on longer and longer, then what are you going to do? Those people do have contracts on those houses, if they’re purchases, which is probably 90 percent of the businesses going on right now. And if they have contracts, is the person that’s on the opposite end, going to call their contract, do they meet commitment dates?” said Bayer.

For the Gonzalez family, their dream of owning a home will have to wait a little longer.

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