What the Government Shutdown Means for Real Estate

Hi friends, Ryan Tesnow here with Coldwell Banker Premier Properties.

As you’ve probably seen in the news, the federal government officially shut down at midnight. While headlines can feel overwhelming, many people wonder: what does this actually mean for buying or selling a home? Let’s break it down.

The Housing Market Doesn’t Stop

First, some good news: real estate doesn’t come to a halt during a government shutdown. Homes are still bought and sold, lenders are still making loans, and title companies are still closing transactions.

But here’s the reality — some government-backed programs and services may slow down, and that can affect certain day-to-day parts of the real estate process.

Key Areas Impacted

Flood Insurance (NFIP)

The National Flood Insurance Program (NFIP) can’t issue new or renewal policies during a shutdown. Existing policies stay in effect, and claims will still be paid as long as funds are available. Buyers in flood zones may need to secure private coverage or expect delays.

FHA & VA Loans

FHA: The FHA will keep endorsing most single-family loans, but programs like reverse mortgages or some condo approvals could stall.
VA: VA loans are still guaranteed, but reduced staffing may mean slower appraisals, approvals, and certificate requests.

USDA Loans

This is where the biggest hit happens. New rural housing loans won’t be issued until the government reopens, and some scheduled closings could be postponed.

IRS & Social Security

Many lenders require IRS income verification or Social Security checks. In past shutdowns, these services slowed or paused, creating possible delays for some buyers.

HUD Programs

HUD will continue critical operations like FHA claim payments and housing vouchers, but with limited staff. New grants, counseling services, and some condo approvals could be delayed.

SBA Loans

Small Business Administration loans — important for some self-employed buyers or business owners — will not be processed until operations resume.

What It Means for Buyers and Sellers

Conventional loans with Fannie Mae or Freddie Mac? You’ll likely see little to no disruption.
FHA, VA, or USDA loans? Expect possible delays — talk with your lender early about timelines.
Flood zones? Secure flood insurance as soon as possible, or explore private market options.

The biggest takeaway is this: real estate keeps moving, but a government shutdown adds bumps in the road. The key is communication. Staying in touch with your Realtor®, lender, and title company ensures you can navigate any hiccups smoothly.

Final Thoughts

No one likes uncertainty, but buyers and sellers don’t have to hit pause. With preparation and guidance, transactions can still move forward successfully.

If you have questions about how this shutdown could impact your home purchase or sale, I’m here to help.

✦ Ryan Tesnow, MPA
Realtor® | Coldwell Banker Premier Properties
📍 New Smyrna Beach & Volusia County, Florida
📞 (254) 206-5020
📧 ryantesnow@premiermove.com