Wednesday, October 9, 2013

Shutdown stalls rural mortgages : Business

Shutdown stalls rural mortgages : Business

The federal government shutdown is stalling some mortgage applications in rural areas and small towns around St. Louis.
The U.S. Department of Agriculture’s Rural Housing Service effectively is closed, lenders say, halting applications for a program that requires no down payment on a home purchase.
“There’s no one home, and the lights are out,” said Doug Schukar, CEO at USA Mortgage in west St. Louis County. Even the agency’s website is down.
Such loans account for 12 to 13 percent of loans made by USA Mortgage, one of the largest home lenders in St. Louis area.