Government shutdown affecting homebuyers

Realtors Association says government loans are being delayed

Government shutdown affecting homebuyers

(WAFF) - The housing market has made strides the past few years in north Alabama. However, the market is starting at a lower point at the beginning of 2019.

“We have people who work for the government, who have been furloughed, and let’s just say they were in the process of looking to buy a home. Well now, with the loans being delayed, they are now going to experience delays getting to closing,” president of the Huntsville Association of Realtors, Cindi Peters-Tanner, said.

The Realtors Association says FHA and VA loans are delayed, since the government is partially shutdown. There are some government entities that are completely shut down, which is causing major immediate effects.

“USDA, which is a 100 percent financing option, is stopped due to the shutdown. It’s a very popular loan program in our area, and we’re really sad people can’t use it right now,” Peters-Tanner continued.

There are thousands of government employees in the Tennessee Valley and even more coming with the influx of jobs. In 2018, more than 14,000 homes were sold in North Alabama with an average of 73 days on the market.

Peters-Tanner said she’s hoping to see the same thing in 2019.

“We do have a really strong market with all the economic indicators the government is going to come back to work. We know that,” she said.

The Huntsville Association of Realtors says it’s staying hopeful.

“Not to mention all the new jobs coming in with all the other announcements, we expect a very strong market this year and next year as well," Peters-Tanner said.

The Realtors Association recommends a conventional loan after putting 20 percent down, since many government loans are delayed currently.

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