Myrtle Beach (WMBF) - Dreams of becoming a homeowner through a federally funded loan are coming to a halt for some. Experts say anyone with a USDA home loan is likely going to be affected. Lenders say USDA employees have been furloughed, so there's no one around to underwrite loans. In some cases home buyers are even losing their interest rates.
"It's impactful because there are many areas, especially some of the smaller subdivisions under $150,000 where you have your entry level borrowers going in," says Scott Krumwiede, the owner of ABC Mortgage in Myrtle Beach.
It normally takes 30 to 45 days to close on a home loan, but now there's no time frame for USDA home loans to close.
Folks with FHA loans could also feel the affects. At Remax Southern Shores in Myrtle beach Tad Fulford says it's a waiting game.
"We've got several dozen applications that will probably be affected but we just don't know how yet so our agents are just talking with clients and telling them to expect something, and if it happens we will work through it and if not then we will be happy," says Fulford.
FHA loans can be underwritten by any lender so it's not a total shut-out for homeowners with those loans. Experts say options are to wait the government shutdown out or look into another loan but always stay in contact with your lender because things could change any day now.