How the Government Shutdown Is Impacting Real Estate Transactions

Let’s talk about how the government shutdown is affecting real estate transactions right now — especially if you’re using a VA, USDA, or FHA loan.

What Buyers and Sellers Need to Know

If you’re currently under contract or working to secure one of these government-backed loans, you should expect delays. That means longer closing timelines and slower approval processes.

The length of the delay will depend on what’s needed for your file. For example, if your lender requires anything from the IRS — like tax transcripts or other verifications — those requests may be stalled due to limited operations.

Flood Insurance Delays

Another area seeing an impact is flood insurance. If you’re buying a home that needs a new flood insurance policy, that’s currently on hold. Without a new policy rating, some deals are being pushed back — and in some cases, even falling apart — until the government resumes normal operations.

What You Can Do Right Now

If you’re already under contract, stay in close communication with your lender and your real estate agent. Make sure everyone’s aware of where things stand and what could be delayed. It’s always better to be proactive and plan ahead rather than be surprised by a last-minute extension.

If you’re about to enter the market, just plan for longer closing timelines. Have your financial documents ready, stay flexible, and know that if you’re using an FHA, USDA, or VA-backed loan, the process might take a bit longer than usual.

Bottom Line

The situation will depend on how long the shutdown lasts, but the key takeaway is simple: be prepared and stay informed.

If you have any questions about how this might affect your home purchase or sale — or if you just want to make sure you’re ready when the time comes — don’t hesitate to reach out to us here at Pinnacle Property Group.