The shutdown has created problems for some East Tennesseans looking to get federal home loans.

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(WBIR - North Knox County) The shutdown has created problems for some East Tennesseans looking to get federal home loans.

The disagreement in Washington disrupted the approval of certain federal home loans.

The Harter family in Gibbs, located in north Knox County, planned to officially gain control of their new house last Tuesday.

"We were waiting to close on a home loan and get the keys, so we were excited," said Tammy Harter. "But, unfortunately that was delayed."

The government shutdown went into effect the same day. The United States Department of Agriculture, which Harter planned to receive a loan from, could no longer help her.

"Frustration levels right now are very high," she said.

USA Today: A long shutdown could slow some mortgage loans

It's effectively left the Harters in limbo.

at American's Dreams Mortgage, in West Knoxville, loan officer Anna Whitford said some federal USDA home loans are basically stuck in the system.

"They are not coming out," she said "We cannot fund those."

But, the shutdown is affecting more than just the USDA, it's also affecting the Federal Housing Administration. The government will still endorse FHA insured loans, but it recently said the closing process could take longer than normal since it had to furlough some of its employees.

Then, there's the IRS.

The IRS must review a person's tax transcripts before they ever receive a loan. However, that process has been delayed too.

"If we can't verify tax transcripts, then yes, that loan, any loan could be delayed at that point," Whitford said.

She said if the shutdown persists, loan applicants will likely have to get an extensions to hold onto their locked mortgage rate.

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