With the federal government currently shutdown, many homebuyers may start to wonder:  Will this affect my ability to get a mortgage?  The good news is that as of right now, the current federal government shutdown here in October 2025 has had little to no impact on the mortgage process. Lenders are still open, rates are still moving, and most loan applications are processing as usual.  Even the VA and the FHA is still helping homebuyers get into homeownership!

The mortgage industry is still fully operational, and most loans are moving forward without a hitch.  But if the shutdown lasts an extended period, it could start to create slowdowns in certain parts of the process, especially when relying on federal agencies for verifications or approvals. Here’s what to know if you’re buying or refinancing a home during this time.

1. Minimal Impact for Now

At this stage, most homebuyers and homeowners won’t feel any noticeable effects from the shutdown. Conventional loans, government-backed loans, private lenders, and most processing systems are functioning normally. You can still apply for a mortgage, get pre-approved, and move forward with your home purchase.

But if the shutdown drags on, the situation could change. That’s because some of the behind-the-scenes steps in the mortgage process rely on government systems that could eventually slow down or pause.

2. Income Verification Delays

Lenders often use the IRS’s tax transcript service (Form 4506-C) to verify your income. During a prolonged shutdown, these requests might be delayed or temporarily unavailable, which could slow down loan approvals, particularly for self-employed borrowers.

If you or your co-borrower are a federal employee or contractor, your employment verification could be affected by furloughs. Lenders are required to confirm employment before closing, so delays in getting those confirmations from HR departments that might be shut down could temporarily hold things up.

What you can do:
Have your most recent tax returns, W-2s, and pay stubs ready to provide directly to your lender. Staying organized helps keep your file moving, even if IRS services become limited.

If you work for the federal government, ask your HR department for an alternate contact or written employment verification now, just in case.

3. FHA, VA, and USDA Loans Could See Delays

Right now, most government-backed loans are still processing, though some internal functions may be slower than usual.

• FHA Loans: Still moving forward, but a long shutdown could delay case number assignments or endorsement processes.
• VA Loans: Typically continue during shutdowns, though certain verifications may take longer.
• USDA Loans: These are most vulnerable to disruption, as the USDA often pauses new loan commitments entirely during extended shutdowns.

What you can do:
If you’re using a government-backed program, stay in close contact with your lender. We can monitor the situation daily and adjust your timeline if needed.

4. Rates and Credit Systems Are Operating Normally

The mortgage market, banks, and credit bureaus are not directly affected by the shutdown. Interest rates may still fluctuate, but that’s more due to economic conditions than the shutdown itself.  Fortunately, the Social Security Administration needs this month’s inflation report to set everyone’s 2026 cost-of-living increases, so the Bureau of Labor Statistics is ordering some people back to work to provide it. If inflation stays the same, nothing will happen. If inflation is down, rates will go down.  If inflation is up, rates will go up.

Luckily, you can still get pre-approved, lock in your rate, and close your loan. If you’re under contract, your lender can help you decide the best time to lock your rate given the current market conditions.

5. If the Shutdown Persists, Expect Gradual Slowdowns

While everything is functioning smoothly right now, an extended shutdown could begin to cause friction on loans requiring federal documentation. The longer the shutdown continues, the more likely it is that loan processing times will stretch and backlogs will build once agencies reopen.

That’s why it’s important to stay proactive and work closely with your lender to keep your loan on track.

Final Thoughts

For now, homebuyers and homeowners have little to worry about – the mortgage industry remains open and operating normally. But if the shutdown drags on, certain loan programs and verification processes could face delays.

As a mortgage professional, my goal is to keep you informed and help you navigate any changes confidently. Whether the government shutdown lasts a few more days or several more weeks, I’ll be monitoring updates closely to ensure your home financing stays on schedule.

Contact me today at (214) 542-4095 or email Rob@TeamRobHomeLoans.com for personalized guidance and up-to-date information on how this could impact your home financing.