Does a Government Shutdown Delay Your Mortgage?

When you hear about a government shutdown in the news, it’s natural to wonder how it might affect your mortgage or home loan process. The good news: most mortgages continue to move forward. But there are some programs and federal verifications that can experience delays.

USDA Loans: Most Affected

The biggest impact tends to be on USDA loans. During a shutdown, the USDA cannot issue final commitments or insure loans, which means applications often go on pause until the government reopens. If you’re using USDA financing, be prepared for possible delays.

FHA Loans: Usually Unaffected

FHA loans are generally safe. Case numbers and endorsements continue to be processed during shutdowns, so buyers using FHA financing rarely see interruptions.

VA Loans: Still Available

VA loans also continue moving forward. Loan identification numbers are still issued, meaning veterans and active-duty service members can usually proceed without major issues.

Flood Insurance: Possible Pause

If you’re buying a home in a flood zone, a government shutdown may create problems. The National Flood Insurance Program (NFIP) often halts issuing new policies until operations resume. If flood insurance is required for your loan, this can create delays in closing.

Federal Verifications: Slower Processing

Some federal verification systems may go offline, including:

• IRS tax transcript verification – Lenders normally verify transcripts directly with the IRS. If that system is down, you may need to log into the IRS website and provide transcripts yourself.
• Social Security number verification – This process can also be delayed until the shutdown ends.

Making Your Mortgage Move Forward

A government shutdown doesn’t mean mortgages stop altogether. Most buyers will see little to no disruption. The key exceptions are USDA loans, flood insurance policies, and federal verifications like IRS transcripts.

By preparing in advance and working with a knowledgeable mortgage partner like Price Mortgage, you can keep your loan process moving — even when parts of the government are on hold.