Government Shutdown Affects USDA Loans


With the government shutdown, people looking to buy houses may be affected by certain types of loans.

When you’re taking out a loan to buy a house, there are plenty of different options to choose from. 

“The main three that are with the government are with VA loans, USDA loans, and FHA loans,” said Ethan Brauch, buyers agent at Stowe Realty Group, “other than that, there’s conventional, first time home buyer programs, and stuff like that out there.”

VA loans are mortgage loans guaranteed by the United States Department of Veteran Affairs.

“VA is really only meant for veterans, with the veterans association out there, that’s for them to get a loan with no money out of pocket,” Brauch explained.

KOLR10 spoke to the Meyers family who is looking to purchase a new home and will be applying for a VA loan.

“Good benefits for being in the military, but mostly the zero down, you don’t have to put anything down, and they keep their rates as low as possible for veterans,” said Rick Meyers.

FHA loan is a program from the federal housing administration.

“FHA is a very low bound payment option,” Brauch said, “you can go as low as 3 1/2 percent down payment, and that’s really helpful for a lot of people to get into homes.”

And USDA loans is a rural development guaranteed housing loan program with the United States Department of Agriculture.

“Now, USDA is a very popular loan program because for rural areas, not in big cities, but rural areas, you can get a loan for zero money down,” Brauch said.

However, Brauch said with the government shut down, the USDA loan is the only one affected.

“Because they are not handing out certain documentation lenders need in order to get those types of loans,” said Brauch.

He said areas in Greene County including Springfield restricts people from using USDA loans.

“But in areas like Nixa, Christian county, and places like that, USDA loans are still eligible in those areas,” Brauch said, “so those are the areas that are more affected in Greene County.”

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