Are Mortgages Still Closing During the Government Shutdown?

Yes, most mortgage transactions are still moving forward. The majority of loans in the U.S. are backed by Fannie Mae and Freddie Mac, which are not funded by the federal government. These conventional loans are largely unaffected by the shutdown.

However, loans tied to federal agencies may experience delays or temporary pauses, depending on the loan program and your stage in the process.

FHA Loans: Slower Processing, Not a Full Stop

If you’re applying for an FHA loan, you can still expect to close on a single-family home, but you may experience slower processing times. FHA-backed multifamily loans and most reverse mortgages are paused until the government reopens.

Key takeaway: Single-family FHA loans are still moving, but delays are possible.

VA Loans: Minimal Disruptions for Veterans

The Department of Veterans Affairs will continue to guarantee VA loansduring the shutdown. That means veterans, active-duty service members, and eligible spouses can continue buying or refinancing homes.

Some minor processing hiccups may occur, but VA lending activity is expected to remain largely uninterrupted.

Key takeaway: VA loans are still being approved, with only minor potential delays.

USDA Loans: On Hold for New Approvals

USDA loans are a popular option in rural and suburban markets because they offer zero-down financing. During the shutdown, the USDA is not issuing new loans.

If your USDA loan was already approved or received a commitment letter before the shutdown began, it should continue as planned. New applications, however, are paused until the government resumes operations.

Key takeaway: Existing USDA loans may proceed, but new applications are on hold.

Flood Insurance: Delays in Flood Zones

The National Flood Insurance Program (NFIP) is not issuing or renewing policies during the shutdown. This may impact closings for homes in flood zones, where insurance is typically required to finalize a mortgage.

Some lenders may temporarily waive flood insurance requirements or accept private insurance providers, although rates and coverage terms may differ.

Key takeaway: Buyers in flood zones may need to explore private insurance or face temporary delays.

Will the Shutdown Affect You?

For borrowers using conventional financing or working with private lenders, the impact will likely be minimal. However, buyers relying on government-backed loans (FHA, VA, USDA) should prepare for the possibility of slower processing or paused approvals.

The bigger question is how long the shutdown lasts. Short shutdowns typically create only a ripple effect in the housing market. Extended shutdowns can affect mortgage accessibility, loan underwriting, and overall housing demand.

What Real Estate Agents and Buyers Should Do Now

If you’re an agent working with buyers, this is a critical moment to partner with a lender who is proactive, fast-moving, and highly resourceful.

At Premier Plus Lending, we are built for situations like this. Our team of elite loan officers understands how to keep deals on track, pivot when necessary, and provide clear communication every step of the way.

Final Thoughts: Stay Informed and Be Prepared

Government shutdowns are frustrating, but they are also temporary. With the right guidance and a lender who knows how to navigate uncertainty, your transaction can stay on track.

If you’re buying a home or refinancing, now is the time to connect with a trusted loan officer who can walk you through the options and help you stay ahead of potential roadblocks.