SYRACUSE -- A government shutdown would hurt the already struggling housing market.

That's because many people in the process of getting a mortgage or wanting to get one could run into some trouble. If there is a government shutdown the mortgage industry wouldn't stop. The issue would be for government backed loans like FHA. FHA loans have lower down payment requirements. A government shutdown would prevent the Federal Housing Administration from guaranteeing new home loans.

Tyler Cagwin, a loan officer at Commonfund Mortgage in Syracuse, says potential home buyers would have to pay attention to the closing date on their contract. If it takes more time to underwrite the loan, the borrow may not close by the time their interest rate expires. The borrower then may be charged to extend their interest rate.

"If the government shutdown goes on for a long period of time, the problems will continue to build up and create a back long in the mortgage industry so that certainly could be an issue," Cagwin says. 

Cagwin says even if there's a government shutdown, the interest rates can be locked in and the process can be started. His company is going about business as usual.