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Federal shutdown impacting local housing market

The ongoing partial federal government showdown is now impacting the housing industry.

Home buyers seeking government-backed mortgage loans such as VA and FHA loans, are experiencing delays, and USDA loans are not available.

President of the Greater Rochester Association of Realtors, Andrew Kachaylo, says the shutdown is having an impact locally.

``I personally have a USDA loan that is in limbo as we speak.  We've had some VA funding issues, we've had some IRS tax verification issues because their website was down.  But the USDA is currently one of the bigger ones for the rural parts of the state," he said.

He says there's no down payment requirement for VA and FHA loans, so switching lenders may not be a viable option for some homebuyers.

``In certain cases it could be the difference between a buyer being able to buy or not.  Without these programs they're sunk.  They might not have the cash to close," he said.

Kaychayko encourages new homebuyers who were considering government-backed mortgage loans to continue looking for properties because the shutdown isn't going to last forever.