Shutdown could affect home buyers - Toledo News Now, Breaking News, Weather, Sports, Toledo

Shutdown could affect home buyers

Posted: Updated:
(Toledo News Now) -

As the government shutdown continues, things aren't looking good for people trying to get mortgages to buy a new home.

Local brokers say the market was just starting to pick back up and gain momentum. They say the biggest blow now is being felt by people who were applying for USDA loans. That entire loaning process has been shut down, creating a big problem in the rural community.

In the city, people who used FHA loans are closing on houses in the next couple of days. They don't have to worry, but brokers warn things could get worse.

"What we're really more concerned about is that this becomes a more prolonged shutdown," said John Mangas, partner at Remax Preferred Associates. "It could have very, very deep implications to our industry."

Brokers say so far, they haven't seen any negative effect on FHA loans, but that could change depending on the length of the shutdown.

Mobile users, click on the "Video" button in the app to watch this story. Download our app here.

Copyright 2013 Toledo News Now. All rights reserved.