Thursday, October 17, 2013

Government shutdown has lasting effect on real estate market - wave3.com-Louisville News, Weather & Sports

Government shutdown has lasting effect on real estate market - wave3.com-Louisville News, Weather & Sports


LOUISVILLE, KY (WAVE) - The end of the shutdown means parts of the country will begin moving again, including the mortgage industry. Government-backed lending was suspended during the shutdown. Mortgage financing hinges on a lot of transactions that could not be processed for over two weeks. As a result, the shutdown postponed or derailed home purchases for many families.
One Jeffersonville, Indiana couple said the shutdown caused them to purchase a different house with higher interest rates and a bigger down payment because of the shutdown. They wanted to receive a USDA Rural Housing Loan. During the shutdown, however, the USDA was not processing any loans. Consequently, Denise Wright and her husband opted for a home in a non-rural part of Clark County and had to put down $5,000.
"It would've been nice to spend the money that we had as a down payment for different things inside the house we could have used, different furniture, whatever," said Wright.

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