Will the Government Shutdown Affect My Mortgage Approval?

Find out which mortgage services are impacted by the shutdown.
  • The private mortgage market and many loans through the FHA and VA won’t be directly affected by the government shutdown.
  • Certain USDA and FHA programs will not be functioning until the government reopens.
  • With some programs that aren’t shut down, low staffing levels could mean delays and difficulty getting assistance.

If you’re getting your mortgage through a program run by the federal government, the current shutdown could potentially cause delays in the process, but if you already have your loan approved or are relying on the commercial mortgage market, it’s unlikely you will be affected. However, with limited staff available to help during the shutdown at the Department of Veterans Affairs and the Federal Housing Administration, it could be difficult to get any support or answers to questions.

Most Mortgage Services Should Continue Without Interruption

If you were concerned that any and all federal loan programs to help you get a mortgage would be shut down along with part of the government, there’s some good news: Much of what’s normally available is still there for you.

Single-family FHA loans are being funded during the shutdown, as are VA loans — though there could be delays. Along with that, although Fannie Mae and Freddie Mac are closely associated with the government, they remain private companies that aren’t directly affected by the shutdown, so mortgage markets that rely on them shouldn’t be affected.

Other Questions: Will the Shutdown Affect My Social Security Check?

Some Loan Programs Will Be Delayed or Not Operating During Shutdown

All that good news doesn’t mean any and all people looking for a mortgage are free and clear from worry as there are limitations to service including some that could seriously disrupt the mortgage process for some. The Department of Housing and Urban Development will have a very limited number of employees on hand to answer questions, and in most cases, you will likely hear a voicemail when calling, informing you that the government is closed. The FHA does have condominium project approvals under the Direct Endorsement Lender Review and Approval Process, manual endorsement actions, resolutions of Holds Tracking queue and TOTAL Mortgage Scorecard evaluations all available during the shutdown, but you should probably expect longer wait times and limited assistance until the government reopens.

Still On: Despite Government Shutdown, Tax Season Starts Jan. 28 — Here’s What You Need to Know

Meanwhile, FHA home equity conversion mortgages (better known as reverse mortgages) and FHA Title I loans (financing for permanent renovations and improvements) will not be processed during the shutdown. And, the USDA won’t be approving new loans during the shutdown, something they had normally been doing at a rate of more than 100,000 a year prior to the shutdown.

Find out the No. 1 lesson all Americans can learn from the shutdown.

More on Mortgages

We make money easy. Get weekly email updates, including expert advice to help you Live Richer™.