RUSSELL TARASCIO, LLC

Government Shutdown & Real Estate: What You Need to Know

If the U.S. government shuts down, many parts of our day-to-day lives can be affected—but for those in real estate, loan processing and closings could face serious delays. Here’s what to be aware of:

🔹 FHA Loans May Be Delayed or Disrupted
FHA (Federal Housing Administration) loans are backed by the government. During a shutdown, FHA staff may be furloughed, which slows or even halts new loan endorsements and could delay closings for first-time buyers who rely on these loans.

🔹 USDA Loans Often Stop Completely
USDA Rural Development loans are directly impacted, and in past shutdowns, no new USDA loans were processed—potentially affecting rural homebuyers and properties under contract.

🔹 VA Loans Still Process, But Slower
VA (Veterans Affairs) loans generally continue with delays, but third-party verifications like IRS tax transcripts or Social Security income confirmations may stall timelines even for VA loans.

🔹 IRS Income Verifications Could Pause
Mortgage lenders depend on the IRS to process Form 4506-C for income verification. If IRS operations shut down, this affects all mortgage types, including conventional loans—not just government-backed ones.

🔹 Social Security & Other Federal Checks May Be Delayed
If lenders need to verify federal benefits or Social Security information, those systems may also be slowed or unavailable during a shutdown.

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🏡 What This Means for Buyers & Sellers:
Delays in loan processing mean potential delays in closings. Some buyers may lose rate locks, sellers may experience backup in their moving plans, and contracts may need timeline extensions.

For any of your Real Estate questions, whether selling or purchasing, call, text, or email me at 781-853-7183 or [email protected]

RT LLC has joined, and is very pleased to announce, a new affiliation with Sue Palomba's
MANGO REALTY, INC
38 MAIN STREET
SAUGUS, MA 01906.
There are 3 other offices, 1 in Everett, MA & 2 in Rockport, MA.
Whether you wish to SELL or PURCHASE property, or simply have any questions, as always, please feel free to refer your friends/family, or contact me personally at 781-853-7183 for all your Real Estate needs!
My goal is, & always has been, to treat all my clients as if they were my own family, striving to make sure they receive maximum value & satisfaction for their transaction!