10/02/2025
Some very good information about lending during a government shutdown down 👇🏻
🚨 Government Shutdown: What It Means for Home Loans & Closings 🚨
The federal government is officially shut down, and here’s how it’s affecting the mortgage world 👇
🏡 Mortgage & Housing Programs
• 🟢 FHA Loans – Still moving forward. Direct Endorsement & Lender Insurance let most FHA loans close; staff-dependent items (condo approvals, case queries) may slow.
• 🔴 USDA / RHS Loans – On hold. USDA can’t issue conditional commitments or loan guarantees during the shutdown, so pipeline loans are stalled until funding resumes.
• 🔴 VA Loans – Severely delayed. VA guarantee functions rely on federal staff and are slowed or stopped.
• 🟢 Fannie Mae & Freddie Mac (Conventional) – Unaffected. Conventional loans continue as usual.
• 🟡 IRS Tax Transcripts (IVES) – Status uncertain. It stayed open in some prior shutdowns, but there’s no guarantee now.
• 🔴 Flood Insurance (NFIP) – Authority expired Oct 1; closings that require new flood policies pause until reauthorized.
🎖️ Military & Federal Workforce
• 🟡 Military Pay – Service members continue working; paychecks may be delayed without special measures.
• 🔴 DoD Civilian Employees – Many are furloughed or working without pay. Back pay is expected, timing unknown.
📚 Quick history: How often & how long?
Since 1977, there have been 20 lapses in federal funding (“funding gaps”). About half last three days or less. The big modern shutdowns ran 5 days and 21 days (1995–96), 16 days (2013), and 34 full days (2018–19). In other words, most are short, but some stretch into weeks.
✨ Bottom line: If you’re under contract or planning to buy, expect potential delays—especially for USDA, VA, and flood-insurance loans. Conventional and most FHA loans are still moving.
📲 Have a contract in process or a rate lock you’re worried about? Message me—I’ll help you navigate timelines and next steps.
