Home purchases put on hold from government shutdown - WRBL

Home purchases put on hold from government shutdown

Posted: Updated:
RALEIGH, N.C. -

For hundreds of people across the state, buying that "Home Sweet Home" has been put on hold because of the government shutdown.

"For the moment, it's a real scare," said Brian Grubbs, president of Raleigh Mortgage Group.

Through the U.S. Department of Agriculture, the government offers low-interest loans to people in rural areas. But since it's a federal government program, the shutdown has the entire program on hold. No USDA loans are being processed.

"That may postpone their closing for weeks or months," explained Grubbs. He said some home buyers who were less than a week away from closing on their homes are now stuck waiting.

"Our current percentage of USDA production is about 20 percent of our total loan production," Grubbs said. "So we're going to have a significant impact in our pipeline this month if things don't pick up soon."

The shutdown could also end up costing home buyers more money if they want to keep their initial interest rate.

"We have to continue to extend the lock on their loan, which would cost them money out of their pocket," Grubbs said.

The USDA home loan website is also unavailable. When a user navigates to the site, the homepage says ,"Due to a lapse of federal funding this site is not available."

A recorded message on the phone number also said the employees have been furloughed and do not have access to email or voicemail.

Grubbs said if someone is in the process of buying a home and considering using a USDA loan, they should go ahead and get the process started. He said people currently waiting to have their loans processed will be helped on a first come first serve basis.

Until then, buyers, sellers and mortgage companies can only wait until the government shutdown is worked out.

"We hope this will be short lived and will blow over very quickly, but until then, we hurry up and wait," Grubbs said.

Jonathan Rodriguez

Jonathan Rodriguez is an investigative reporter and member of the WNCN Investigates team. His storytelling specialty is connecting the dots to get to the truth, with a goal of delivering results for our community. If you have something you’d like WNCN to investigate, contact Jonathan.

More>>

  • PoliticsMore>>

  • NC Senate gives tentative OK to state budget

    NC Senate gives tentative OK to state budget

    Thursday, July 31 2014 9:11 PM EDT2014-08-01 01:11:41 GMT
    File PhotoFile Photo
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
  • Audit: Medicaid's NCTracks fails to meet milestones

    Audit: Medicaid's NCTracks fails to meet milestones

    Thursday, July 31 2014 12:33 PM EDT2014-07-31 16:33:29 GMT
    An audit raises further questions about North Carolina’s Medicaid payment system.
    An audit raises further questions about North Carolina’s Medicaid payment system.
  • NC Senate sees lawmaking continue into November

    NC Senate sees lawmaking continue into November

    North Carolina lawmakers want to continue their election-year legislative session past November's elections.
    North Carolina lawmakers want to continue their election-year legislative session past November's elections.
Powered by WorldNow

1350 13th Avenue
Columbus, GA 31901

Telephone: 706.323.3333
Fax: 706.327.6655
Email: news@wrbl.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.