As the partial government shutdown stretches through another week, Florida home buyers using government-backed loans may have a hard time closing on their houses as federal agencies operate in a limited capacity.
U.S. Department of Agriculture (USDA) and Federal Housing Administration loans (FHA) are popular lending sources that are difficult to obtain right now.
A study by WalletHub ranks Florida as the 14th state affected most by the shutdown. The study is based on five factors, including the share of federal jobs, federal contract dollars per capita, percent of families receiving SNAP, or food stamps, access to national parks and real estate as a percentage of gross state product.
For Florida, real estate is the biggest factor, ranking third for highest percentage of real estate as a gross state product.
Conventional loans remain unaffected by the shutdown, but the longer the shutdown continues, the more business will be affected.
The FHA falls under the Department of Housing and Urban Development (HUD). During a government shutdown, up to 95 percent of HUD employees may be furloughed, slowing down the approval and funding of FHA loan applications.
According to Florida Realtors, the reversal of FEMA's ruling was "a critical win for buyers and sellers of property requiring flood insurance."
Government sponsored enterprises such as Fannie Mae and Freddie Mac should remain unaffected by the shutdown, according to Florida Realtors, though buyers may face delays getting tax return receipts and social security number verification as the Internal Revenue Service and Social Security Administration operate in a limited capacity.
The longer the shutdown continues, the more delays are likely.