10/27/2025
The government shutdown that began October 1st has taken over financial headlines. While some federal agencies remain open, essential workers including air traffic controllers and TSA officers are working without pay, and over 4,000 federal employees have received layoff notices. This has raised safety concerns for airline passengers.
Home Financing
Homeowners and buyers who are concerned that the current government shutdown will derail their plans can relax...mostly.
Conforming loans are the least affected, since they're not funded or insured by federal government agencies. Most mortgages and refinances fall into this category. However, if federal tax transcripts are required by a lender's underwriters, this could delay final verification.
garyeverman.remax.com
Buying or refinancing a home with a government-insured FHA or VA loan could be delayed, especially if some staff are furloughed or laid off this month.
Home buyers in rural areas who have applied for financing through the USDA have the most potential problems, as the agency has stopped issuing home loans during the shutdown. Pre-scheduled direct‑loan closings will also be postponed.
Properties in high-risk flood zones may be negatively impacted, as flood insurance policies issued by the National Flood Insurance Program aren't currently available. States that will be most affected include those with large areas of high-risk flood zones, including Florida, Louisiana, Texas, New York, and New Jersey. However, private flood insurance companies are still open for business.
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