Shutdown could impact prospective homebuyers - Los Angeles Local News | FOX 11 LA KTTV

Shutdown could impact prospective homebuyers

Posted: Updated:
ATLANTA -

Just as the road to the American Dream seemed to be making a comeback, the government shutdown could impact prospective homebuyers looking for a loan.

"One of the things that lenders have been doing for the last few years is verifying individual borrowers' tax returns with the IRS. That process has stopped with government shutdown. If that continues for long term, lenders may be more hesitant to fund loans," mortgage lender Brian Berman said.  

Berman said that he has fielded several phone calls from concerned buyers. So far, none of his clients have hit any major roadblocks, but the problems may arise the longer the shutdown continues.

"The ability to buy a house from HUD, from what I understand, has slowed down. The office is at a skeleton crew," he said.

A recorded message at Atlanta's Housing and Urban Development indicated that their office was closed on Friday due to the government shutdown.

The federal Housing Administration is now running at less than a tenth of its normal size. The shutdown comes as construction and new housing sales have started to climb out from the financial crisis.

There is still another hurdle looming; the U.S. Treasury has set Oct. 17 as the debt limit deadline.

"Right now, interest rates are fairly low. If the government were to default on some debt, I think that could have a huge impact on interest rates. Probably push them up quite a bit, probably push them up to multi-year highs," said Berman.

Furloughed employees who are currently in the loan process could see mortgages denied given the differential in income as they continue to go unpaid.

  • More Local NewsMore>>

  • Atlanta Falcons

    Falcons 2014-2015 schedule released

    Falcons 2014-2015 schedule released

    Wednesday, April 23 2014 10:13 PM EDT2014-04-24 02:13:59 GMT
    The NFL has released the 2014-2015 season schedules and the Atlanta Falcons slate of games provides plenty of intrigue. Here are a few items of interest. Week 1 will be a rematch of last year’s season opener, only this time, the New Orleans Saints come to the Georgia Dome. The Falcons play the Detroit Lions in London in Week 8. It’s a game fans will have to get up early to watch. It airs at 9:30 a.m. EST.
    The NFL has released the 2014-2015 season schedules and the Atlanta Falcons slate of games provides plenty of intrigue. Here are a few items of interest. Week 1 will be a rematch of last year’s season opener, only this time, the New Orleans Saints come to the Georgia Dome. The Falcons play the Detroit Lions in London in Week 8. It’s a game fans will have to get up early to watch. It airs at 9:30 a.m. EST.
  • GBI issues amber alert for two-year old girl

    GBI issues amber alert for two-year old girl

    Wednesday, April 23 2014 6:46 PM EDT2014-04-23 22:46:51 GMT
    Maliah Harris Maliah Harris
    The Georgia Bureau of Investigation has issued a Levi’s Call, Georgia’s Amber Alert. The Mississippi Highway Patrol is on the lookout for 2 year old Maliah Harris. Harris is believed to have been abducted in from Caledonia Mississippi Wednesday morning. Harris is described as a white two-year-old female with blonde hair. Authorities said Harris was possibly abducted by Donald Boyd Harris. Boyd is described as a 34-year old 5’11” white male with brown hair and blue eyes. Authorities believe th...
    The Georgia Bureau of Investigation has issued a Levi’s Call, Georgia’s Amber Alert. The Mississippi Highway Patrol is on the lookout for 2 year old Maliah Harris. Harris is believed to have been abducted in from Caledonia Mississippi Wednesday morning. Harris is described as a white two-year-old female with blonde hair. Authorities said Harris was possibly abducted by Donald Boyd Harris. Boyd is described as a 34-year old 5’11” white male with brown hair and blue eyes. Authorities believe th...
  • Governor signs controversial gun bill into law

    Governor signs controversial gun bill into law

    Wednesday, April 23 2014 6:12 PM EDT2014-04-23 22:12:43 GMT
    A few hundred gun rights advocates gathered for Wednesday's bill signing in Ellijay with top officials including House Speaker David Ralston and bill sponsor Rep. Rick Jasperse.
    A few hundred gun rights advocates gathered for Wednesday's bill signing in Ellijay with top officials including House Speaker David Ralston and bill sponsor Rep. Rick Jasperse.
Powered by WorldNow

KTTV FOX 11
1999 S. Bundy Dr.
Los Angeles CA 90025

Main: (310) 584-2000
News Tips? (310) 584-2025

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices