(As of October 1, 2025)
Congress missed the September 30 funding deadline, which led to a partial government shutdown at midnight. While some agencies continue limited operations, many housing- and mortgage-related programs are either paused or slowed. Below is a breakdown of how major agencies and programs are expected to function during this period.
Environmental Protection Agency
With most EPA employees furloughed, many compliance activities are suspended. This includes wetlands reviews under Section 404 and enforcement of lead-based paint and renovation rules.
NAR Contact: Russell Riggs – rriggs@nar.realtor
HUD Programs
HUD continues operating under its contingency plan. FHA is still insuring most new single-family mortgages (except HECMs and Title I loans), and essential functions like claims payments, loan servicing, and management of foreclosed properties are moving forward. However, activities that need staff input, such as new condo project approvals, are paused. The FHA Resource Center remains open, but with fewer staff and longer response times. Housing counseling may continue only if funding is already in place. Payments for Housing Choice Vouchers are expected to continue, but new approvals could be delayed, and extended shutdowns may cause local housing authorities to face cash flow challenges.
NAR Contacts: Elayne Weiss – eweiss@nar.realtor; Caitlin Vannoy – cvannoy@nar.realtor
Government Sponsored Enterprises
Fannie Mae and Freddie Mac remain fully operational, but a few items may be affected:
- Employment verification for federal workers can occur after closing but must be complete before loan delivery.
- The IRS will not issue tax transcripts during the shutdown, though closings can move forward with signed 4506T forms.
- Fannie Mae requires verification of Social Security numbers if disputed; Freddie Mac does not.
- Flood insurance must be documented through an application with payment or by assigning an existing policy.
NAR Contacts: Ken Fears – kfears@nar.realtor; Matt Emery – memery@nar.realtor
Internal Revenue Service
During shutdowns, only a small portion of IRS employees (around 12%) stay on the job. Their focus is on processing government payments, while most taxpayer services—such as refunds, phone support, liens, and levies—are unavailable.
NAR Contact: Evan Liddiard – eliddiard@nar.realtor
National Flood Insurance Program (NFIP)
- No new or renewal NFIP policies can be issued.
- Existing policies remain valid until they expire.
- Claims will be processed as long as funds are available.
- Policies can still be transferred from seller to buyer.
- Private flood insurance may be an option during the lapse.
NAR Contact: Austin Perez – aperez@nar.realtor
Rural Housing Programs
The USDA will not issue new direct or guaranteed loans, and scheduled closings for direct loans are halted. Some pending guaranteed loans may still receive commitments, and disbursements for construction loans may continue to protect USDA’s interests. Rental assistance will continue only if property interests are at risk and funds are available. Any guaranteed loan closing without prior approval will proceed at the lender’s own risk.
NAR Contacts: Elayne Weiss – eweiss@nar.realtor; Caitlin Vannoy – cvannoy@nar.realtor
Veterans Affairs
The VA continues to guarantee home loans during the shutdown, though reduced staffing may result in slower appraisals, approvals, and certificates of eligibility. Borrowers should check with their lenders for updates on processing times.
NAR Contacts: Elayne Weiss – eweiss@nar.realtor; Caitlin Vannoy – cvannoy@nar.realtor
Small Business Administration
- New SBA loans, including 7(a) and CDC 504 loans, will not be processed.
- Previously approved CDC 504 loans may still close.
- Some limited servicing and liquidation will continue.
- SBA Disaster Loans remain available.
NAR Contact: Erin Stackley – estackley@nar.realtor
Visa Programs – EB-5 and H-2B
The EB-5 Immigrant Investor Program remains funded and operational through September 2027, so filings and responses to USCIS can continue, though delays are likely due to shutdowns at related agencies.
By contrast, the Department of Labor has halted all labor certification and prevailing wage processes for H-2B and similar visas. Online systems are offline, and deadlines are typically extended during lapses in funding.
NAR Contact: Russell Riggs – rriggs@nar.realtor
Federal Government Shutdown Survey
In a past NAR survey, most REALTORS® (75%) said shutdowns had no effect on their contract signings or closings. About 11% experienced impacts on current clients, and another 11% on potential clients.
Among those affected, the most common issue (25%) was buyers choosing not to move forward due to overall economic uncertainty—not because they were federal employees. Only 1% of REALTORS® cited USDA loan delays as the cause of closing disruptions.
Source: National Association of REALTORS® (nar.realtor)
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