10/01/2025
“Congress did not reach a debt ceiling agreement by midnight (last night) - a government shutdown has begun. Buyers - mortgage lending could be slowed depending on who you are using for financing.
Here's what it may mean for buyers:
Conventional (Fannie/Freddie) - No impact.
Ginnie Mae - Will continue issuing securities.
VA Loans - Still operational, but appraisals may take longer.
FHA Loans - Single-family loans can continue to close. Some condo approvals and staff responses may be delayed.
USDA Loans - No new commitments or guarantees will be issued during shutdown. Loans with existing commitments can still close, and USDA will guarantee them once operations resume.
Tax Transcripts - IRS expects to remain fully operational - no disruption anticipated.
Social Security Validation - No change - validations must still be received prior to closing.
Flood Insurance - NFIP may pause new or renewal policies. Private flood coverage is an option.
Borrowers with Federal Employment - If furloughed, income cannot be used for qualification until they return to work.
We'll continue to monitor the situation closely and keep you informed of any changes.”
~Kyle Dynes - Motto Mortgage 1
If you have any questions or concerns, please feel free to reach out to me.
