Shutdown impacts Huntsville housing market

Published: Oct. 16, 2013 at 3:35 PM CDT|Updated: Nov. 13, 2013 at 7:23 PM CST
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HUNTSVILLE, AL (WAFF) - Huntsville's housing market is seeing a slight impact from the government shutdown.

Federal Housing Administration and USDA loans are both backed by the government. Any of those types of loans that were in the pipeline to be approved have stalled with the government.

Carey Rosenblum, a broker with Rosenblum Realty, estimates that about 35% of people who buy in the Huntsville area use one of those type of loans. He says the effect is obvious.

"We have some slow downs in the processing of our FHA loans, some mortgage companies can't get appraisals turned around fast enough and USDA Rural Housing is very popular here with 100% financing and that department has been shutdown so that department's underwriting has been slow," said Rosenblum.

Rosenblum also points out the hesitation to buy or lease that has come along with the shutdown, especially since there are so many government contract workers in Huntsville.

If you do need a FHA or USDA loan to purchase a house, Rosenblum says don't sit around and wait for the shutdown to end. He says go ahead and meet with a realtor to get the ball rolling.

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