Shutdown threatens FHA and VA loans

<p> <font size="2">At Great Lakes Credit Union, those loans account for about 50 percent of business.</font> </p>

At least 100,000 government workers are affected by the shutdown, but if this continues, the shutdown will start to affect some popular forms of home loans.

Real estate prices have been on a steady increase recently, and digging out of the recession means that people are venturing back into to the home buying market.

"Right now we're low on inventory in the Toledo community," said David Seeger, president of Great Lakes Credit Union.

However, since there is no one to approve home loans through government programs, like FHA and VA loans, people needing those types of loans will be out of luck.

At Great Lakes Credit Union, those loans account for about 50 percent of business.

USDA loans, though used less frequently, have been halted altogether.

At Danberry Realtors in Perrysburg, the problems have worried them.

"I think the government shutdown has really changed the morale of people. And if anything, we're just seeing a little bit of a slow-down," said realtor Megan Sankiewicz.

This could change if the shutdown persists.

"By the end of this month, you'll start to see issues starting to arise," said Seeger.

Going on three weeks of furloughs, government employees will already be behind when they return to work.

"It's creating a back-log. You know when you buy a home and apply for a loan, it takes some time," said Seeger.

If that process is held up, it might cost buyers the home they wanted.

"A seller might be tired of waiting, and you could lose your opportunity to buy that particular home because you can't get your approval. [It has] nothing to do with what the bank is doing, or what you're doing. It all has to do with the government shutdown," said Seeger.

If you are currently in the home-buying market, try exploring other options. Options that involve substantially higher down payments, or cash buys.

Otherwise, you'll just have to wait it out. But again, you may run the risk of losing that particular home.