4 Ways A Government Shutdown Can Affect Buying a Home or Ranch

Are your currently under contract to purchase a home or farm and ranch property? Thinking about making an offer on a property? Even in our rural area, you could be affected by a government shutdown, and here are a few ways how.


During a government shutdown, the National Flood Insurance Program cannot sell new flood insurance policies. Not only are homes affected, but also farm and ranch property with improvements located in the flood zone (and your lender requires flood insurance). Are you buying a property that requires flood insurance? Ask your real estate professional how your closing could be delayed and what your options are.


FHA loans are government guaranteed loans, and though they will not shut down these loan products completely, some delays with FHA processing may occur due to short staffing.


Are you obtaining USDA funding to purchase a home or farm/ranch?
The U.S. Department of Agriculture will not issue new rural housing Direct Loans or Guaranteed Loans. Scheduled closings of Direct Loans will not occur. Even though the chance is slim, there might be circumstances in which you can still close. Ask your real estate agent what your options are.


The IRS will close and suspend the processing of all forms, including requests for tax return transcripts. Certain mortgages require these transcripts to verify the tax returns you have provided are true and correct, so delays in this verification process can be expected – which can delay your closing.


Over the past 15 years, I have been involved in many real estate transactions that were affected by government shutdowns, and the biggest piece of advice I can give you – be patient and expect delays! The good news? You are NOT the only one who’s closing may possibly be delayed.

If you are purchasing a property, ask your Buyer’s Agent if you are going to be affected, and what steps you can take as to not further delay your closing.

If you are selling a property and currently under contract, ask your Listing Agent if the buyer will experience delays.

If you would like more detailed information, read this article from the National Association of Realtors, and as always, let me know if you have any questions!

Cori Radley

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