BUXTON, Maine (NECN) -- The government shutdown is having a chilling effect on the rural housing market in Maine.
Many first-time home buyers-- who meet the income requirements -- purchase their homes with rural development or RD loans that are issued through the USDA. These loans are an attractive option for low and moderate income people who are willing to live outside major cities because they can buy a home with no money down.
But when the government shut down, so did this loan program. Now first time buyers like jessica smith can't close on the home she just built.
"It's frustrating you know we want to get in here and create the home we've dreamed of and we're stuck," said homebuyer Jess Smith.
"We're in uncharted waters there's no good answer," said Shawn Casey, President of Cumberland County Mortgage. "None of us know when the government will open up and when they do we don't know how backlogged the IRS or the regional RD office will be. There is no definite time line"
Maine has one of the highest rates of home ownership in the country. Roughly 5-10 percent of homes in maine are purchased with RD loans.
On Thursday, President Obama will meet with a a small group of house republicans in an effort to end the shutdown.