Will a Government Shutdown Delay My Mortgage Closing?

You’ve done everything right: found the home, locked your rate, and circled your closing date on the calendar. Then the government shutdown.

It’s natural to wonder, will this derail your mortgage closing?

The short answer is most home loans will still close, but some may face delays, especially if your financing depends on federal programs or government-run verification systems.

Let’s unpack what that means for you and how to keep your closing on track.

How a government shutdown affects mortgages

A government shutdown doesn’t close banks or stop lenders from operating. But it can slow down the federal agencies and systems many lenders rely on to process and verify your loan.

Here’s a quick overview of how different mortgage types are affected:

Why some mortgage closings get delayed

Even if your lender is ready to move forward, a government shutdown can slow things down because parts of the mortgage process depend on federal agencies. One common bottleneck is the IRS, which verifies borrowers’ tax returns through Form 4506-T. When that system is offline, lenders can’t complete final underwriting.

Delays can also occur with Social Security number verification if the SSA system is unavailable. In those cases, lenders often have to wait until the shutdown ends or find other ways to confirm borrower information.

USDA loans are usually hit hardest since the Rural Housing Service pauses most operations entirely during a shutdown. FHA and VA loans may also move more slowly as reduced staffing leads to backlogs for case numbers or appraisals.

The good news is that these issues are temporary. Once government operations resume, backlogged verifications clear quickly and most delayed loans close within a few days.

How to keep your closing on track

If you’re buying a home during a government shutdown, there’s still a lot you can do to keep things moving and reduce the risk of major delays.

1. Ask your lender about backup plans.
   Many lenders have private vendors or alternative verification systems that allow loans to keep progressing even when IRS or Social Security systems are down.
2. Provide every document your lender might need.
   Since some verification systems are unavailable, having complete and current documentation—like recent pay stubs, W-2s, and full bank statements—can help your lender verify information manually.
3. Talk with your agent about flexibility.
   If you haven’t closed yet, your agent can help you negotiate a short extension or add-on agreement acknowledging possible delays due to the shutdown.
4. Stay in close communication.
   Check in regularly with your lender and real estate agent. Ask for updates on which parts of your loan process are affected and when they expect progress to resume.
5. Stay patient, but ready.
   Once the government reopens, backlogged requests are processed quickly. Having your file complete and organized will help you close as soon as things start moving again.

If your closing is delayed

If your loan hits a temporary pause, remember that you’re not alone. In previous government shutdowns, most buyers experienced only short delays, with their loans resuming within days of government services reopening.

Your rate lock may also be extendable. Many lenders understand that these delays are beyond your control and are willing to extend the lock period or honor your original rate once processing resumes.

Sellers are often understanding too. If your lender provides a letter explaining that the delay is due to the shutdown, it can help you negotiate a revised closing date without losing your contract or earnest money.

Even though a delay can be stressful, it’s usually temporary. Staying in close contact with your lender and agent will keep you informed and ready to move forward as soon as the system is back online.

The bottom line

Buying a home during a government shutdown can feel stressful, but it’s not the end of your journey. With clear communication and a little flexibility, most buyers still make it to the closing table.

Remember that these slowdowns are temporary. Stay patient, stay prepared, and you’ll still get the keys to your new home.