The shutdown's impact on a real estate transaction

If you’re buying or selling a home right now, the government shutdown may already be showing up in small but frustrating ways; slower loan approvals, delayed verifications, or unanswered questions from lenders. It’s creating uncertainty across Philadelphia and Bucks County, even for transactions that seemed straightforward just days ago.

Some real estate activity continues as usual, but anything involving federal agencies; like FHA, VA, or USDA loans, may face interruptions or longer processing times. Tax and social security verifications could also take longer, which can affect both buyers and sellers waiting to close.

The timing of a resolution is never certain, so the best approach right now is to stay flexible, communicate often with your agent and lender, and plan for possible delays.

Here’s what you should know if you’re navigating a real estate transaction during a government shutdown:

1. If You're Using an FHA, VA, or USDA Loan
These government backed loans rely on federal employees to process and approve them. Right now, that means delays in getting your loan through underwriting or approved in time to close. If you're using one of these loan types, expect things to move more slowly than usual.

2. If Your Lender Needs IRS or Social Security Verifications
Even if you're using a conventional loan, your lender might need documents from the IRS (like tax transcripts) or Social Security Administration (to verify income). With many federal offices closed or understaffed, this could hold things up.

3. Buying in a Flood Zone? Check Your Insurance
If you're purchasing a home in a flood zone, you may need insurance from the National Flood Insurance Program (NFIP). Right now, no new policies are being issued, which means some closings could be delayed until coverage is available again.

4. You Might See Fewer Buyers or Slower Offers
With all the uncertainty, some buyers are waiting it out. That could mean fewer offers if you're selling, or less competition if you're buying. Either way, it could impact pricing and how quickly homes are moving.

5. Federal Employees May Need to Wait
If you or someone you're selling to works for the federal government, they may be going without pay right now. That could delay mortgage approvals, especially if lenders can’t verify employment or income.

6. Delays in Affordable Housing Programs
If you're involved in a transaction that includes Section 8 vouchers, housing grants, or other HUD-related programs, those could be delayed too.

What Can You Do?

• Build in extra time for closing if you're currently under contract.

• Stay in close contact with your lender and agent.

• Don’t panic: real estate is still moving, just with a few more hurdles than usual.

If the government reopens soon, things will gradually pick back up. But some delays, especially with loans and insurance, could linger a bit longer.

As your agent, I’m tracking the situation daily and working to protect your timeline. If you have questions or concerns about how the shutdown might affect your move, just reach out. We’ll navigate this together, one step at a time.