What the Government Shutdown Means for Homeowners, Buyers & Sellers

Whether you're under contract, preparing to list, or casually house hunting, the recent government shutdown might feel like one more thing to stress about. But here’s the truth: most real estate transactions will keep moving, and you probably won’t feel much of a shake-up—

especially with the right team guiding you through.

Still, there are a few things worth knowing so you’re not caught off guard.

📌 Closings Will Continue—But Some Federal Processes May Slow Down

Home purchases don't stop just because Congress can’t reach a deal. Title companies, attorneys, lenders, and brokerages like ours are still open for business.

What may take longer are certain back-end services that rely on federal systems. These include things like verifying tax returns, requesting Social Security verifications, or getting approval for specialty loans like USDA.

If you’re using a conventional or VA loan, you likely won’t see any impact at all. But if you're using a program that pulls data directly from the IRS or Social Security Administration, there could be some processing delays behind the scenes—not necessarily enough to stop your closing, but possibly enough to affect your timeline.

📌 Buying in a Rural Area? Here’s Where You Might Hit Pause

One area seeing a direct pause: USDA Rural Housing loans. These are backed by the U.S. Department of Agriculture and are currently not issuing new loan commitments during the shutdown.

If you're under contract with a USDA loan or planning to use one, now is the time to talk to your lender and agent (🙋🏽‍♀️ Hi, that’s us!) about your options or possible extensions.

📌 Flood Insurance and FEMA-Backed Coverage

If you're buying in a flood zone, check the fine print on your insurance. The National Flood Insurance Program (NFIP)is paused for new and renewal policies during the shutdown. However, private flood insurance is still available, and often just as reliable.

Already have coverage? You’re fine—existing policies stay active.

📌 What About FHA and VA Loans?

FHA: Most systems remain online and functioning, so these loans are still moving through. There may be delays on any loans that require a human review or special processing (like reverse mortgages or certain condos).

VA: Loans for eligible veterans remain active. Fewer staff are available to answer questions, but closings can still proceed.

📌 So… Should You Be Worried?

Short answer: Right now, No. Long answer: Stay informed and stay connected.

At S. Thomas Realty Group, we’re here to help you navigate every step—shutdown or not. We've got the contacts, the experience, and the backup plans to help keep your deal on track. If you’re unsure whether your loan or timeline could be impacted, let’s talk it through.

📌 Here's What You Can Do Right Now:

• Already under contract? Confirm your loan type and timeline with your lender

• Shopping for homes? Ask about flood zones and financing options

• Using a government-backed loan? Communicate early to adjust expectations

• Not sure what this means for you? Book a quick consult with us—we’ll guide you

📌 Final Thoughts

Shutdowns can sound dramatic, but most buyers and sellers won’t feel the effects directly—especially not with a proactive agent and lender team. So breathe easy. We’ve been here before, and we’ll keep moving forward.

Want personalized advice on how the shutdown could impact your next move? 📲 Let’s connect https://calendly.com/sthomasrealty/discovery-call