Buying a home comes with enough moving parts. Throw in a government shutdown, and things can get complicated quickly. 

Whether you’re applying for a loan, waiting on paperwork or heading to closing, delays in federal agencies like the IRS, FHA or USDA can impact your timeline. 

But with the right preparation and a lender who knows how to navigate disruptions, you can still move forward confidently.

How a government shutdown can impact the homebuying process

Government shutdowns typically happen when Congress can’t agree on how to fund federal agencies, leading to a temporary halt in non-essential government operations. 

While these events are political in nature, their effects are often felt in very practical ways, especially by people in the middle of major financial decisions, such as buying a home.

Let’s break down how a government shutdown could affect your ability to move forward with your mortgage, from loan delays to difficulties related to document verification.

Delays in government-backed loan programs

If you’re pursuing a government-insured mortgage, such as an FHA, VA or USDA mortgage loan, your loan application might run into snags during a government shutdown. 

Here’s why:

• FHA loans: The Federal Housing Administration typically continues to endorse loans during a shutdown, but reduced staffing can slow down manual underwriting and case number assignments.
• VA loans: The Department of Veterans Affairs often maintains operations during short-term shutdowns, though some administrative functions may be delayed if staffing is limited.
• USDA loans: These are often the most affected. The U.S. Department of Agriculture typically suspends issuing new loan guarantees during a shutdown, halting progress on new applications.

In short, if your financing relies on a federal agency, a shutdown could delay your loan approval or closing date.

IRS and SSA processing issues

Most mortgage lenders, including Compass Mortgage, require documentation from the Internal Revenue Service (IRS) to verify your income—usually through IRS Form 4506-C, which requests your tax transcripts.

During a government shutdown, these requests may not be processed in a timely manner, leading to bottlenecks. 

Similarly, identity verification through the Social Security Administration (SSA) could be delayed. These slowdowns can hold up your loan approval, even if all other parts of your file are ready to go.

Flood certifications and appraisal gaps

Some properties require flood zone determinations from the Federal Emergency Management Agency (FEMA), which may not be available during a shutdown. 

Additionally, if an appraisal or mortgage-related inspection depends on data or verification from a government database, those tasks may be postponed.

These aren’t hurdles for every buyer, but they can become an obstacle depending on the property you’re buying.

What homebuyers can do during a shutdown

While a shutdown can complicate the homebuying process, there are smart steps you can take to keep your loan moving and your timeline intact.

1. Get a fully underwritten loan commitment

The best way to avoid uncertainty is to be prepared. 

Compass Mortgage offers a solution through our Get Committed® program—a fully underwritten loan commitment that goes beyond standard pre-approval.

Unlike pre-approval, which offers a preliminary look at your credit and income, Get Committed® verifies your financial information up front. 

That means you can:

• Lock in your interest rate before you find a home
• Compete with cash buyers
• Avoid delays caused by last-minute verifications or funding issues
• Close quickly, even during a government shutdown

This proactive approach positions you to make stronger offers and move faster when it counts.

2. Prepare your documents early

During a shutdown, any delays in document verification can be magnified. 

Be ready by organizing the documents your lender will need:

• Recent pay stubs
• Last two years of W-2s or tax returns
• Bank statements for all checking and savings accounts
• Valid photo ID
• Employment verification (if available)

Having these items on hand means fewer hold-ups if government entities like the IRS are affected.

3. Explore flexible loan options

If you qualify for a conventional loan, that option might be the smoother path during a shutdown. 

Conventional loans are not backed by federal agencies, so they’re less likely to be disrupted by furloughs or paused services.

That said, your loan officer can help you compare all options—including FHA, VA and USDA loans—to find the best fit for your situation.

4. Build flexibility into your timeline

If you’re already under contract, talk to your real estate agent and lender about possible changes in the schedule for finalizing your purchase. 

Appraisals, verifications and other third-party steps may require extra time. Being proactive about deadlines now can save stress later.

5. Keep shopping for homes

Some buyers get spooked during government shutdowns and pause their search. That might be your window of opportunity.

If you’re ready with a strong loan commitment and a flexible mindset, you could have less competition and more negotiating power.

How Compass Mortgage helps you stay on track

Compass Mortgage supports buyers during uncertain times with proven processes, fast closings and personalized guidance.

The strength of Get Committed®

Our Get Committed® program gives you a fully vetted loan commitment backed by verified income, credit and employment, so it’s more reliable than a pre-approval.

Especially during a shutdown, this makes your offer stronger and more appealing to sellers.

You can:

• Avoid surprises later in the loan process
• Compete in seller’s markets with a commitment that holds weight
• Close fast (often in 15 days or less)

This reduces the impact of any federal processing delays and gives you more control over your timeline.

Personalized service with tech that works

At Compass Mortgage, you’re not just a file number. Our loan officers treat you like family, guiding you with personal attention while giving you access to digital tools that simplify your experience.

You can upload documents, track your loan progress and communicate directly with your loan team.

We’re also licensed in all 50 states, so even if one regional office is affected, your loan isn’t left in limbo.

FAQ: Government shutdowns and homebuying

Will a government shutdown stop my mortgage from closing?

Not necessarily. Many loans, including conventional loans, can still move forward during a shutdown. However, delays may occur if your loan relies on services like IRS income verification or USDA approval.

Can I still get a VA or FHA loan during a shutdown?

Yes, but expect slower processing. FHA and VA departments may still function at limited capacity. Work with a lender like Compass Mortgage that understands how to navigate these situations.

What happens if the IRS can’t process my tax transcript?

Lenders may not be able to verify your income using Form 4506-C, which can hold up approval. Compass Mortgage may be able to guide you through alternative documentation or proactive strategies.

Are home purchases paused during shutdowns?

No, but timelines may shift. With preparation and a fully underwritten loan like Get Committed® provides, buyers can still make competitive offers and close with confidence.

Should I wait to buy a home if there’s a shutdown?

Not necessarily. With fewer buyers in the market and the right lender by your side, you may actually have an advantage. Being prepared is more important than waiting.

Stay prepared, not paused

A government shutdown doesn’t have to stall your dream of buying a home. 

While certain federal services may pause, your journey doesn’t have to. With early preparation, the right loan strategy, and a trusted lender by your side, you can stay on track.

Compass Mortgage’s distinctive Get Committed® program puts you in the best possible position to win the home you truly want.

Apply now or call us at (877) 635-9795 to speak with one of our knowledgeable and helpful loan officers today.