U.S. lawmakers failed to reach a deal on funding the United States Government by October 1, 2025. As a result, the federal government has shutdown and will remain shutdown until lawmakers pass legislation to renew government funding.
A government shutdown will impact real estate closings in a myriad of ways:
Payoffs from the IRS or any other governmental agency will be impossible to obtain.
The FHA will continue to issue single-family loans, but there will likely be delays in the process. Their multi-family loans will be affected as they will not make new commitments in the Multi-Family Program during the shutdown.
The U.S. Department of Agriculture will not issue new rural housing loans or guaranteed loans, and scheduled closings of direct loans will not occur.
The National Flood Insurance Program will no longer have funding which will impact closings that require flood insurance.
The VA will continue to guarantee mortgages during the shutdown, but their efforts will be impacted if the property requires flood insurance.
Finally, Fannie and Freddie may update their loan purchase requirements during the government shutdown as they did during the last shutdown to allow purchases to continue, but this is not guaranteed.
