Quick Summary:

  1. Loan processing MAY be delayed depending on your lender and type of loan because the IRS is closed an cannot provide copies of your tax returns and the SSA is closed and cannot verify social security numbers.
  2. HUD will endorse loans for single family homes but it not multi-family loans (condo’s and townhomes)
  3. VA loans are being processed but expect delays.
  4. USDA loans are NOT being processed.                                                                                                                                                  

Below is a shortened version of and is DIRECTLY QUOTED from, an update that was published on-line by the National Association of Realtors (direct link here)

Oct. 3, 2013 – What Does the Government Shutdown Mean for REALTORS®?

The information below is based on NAR staff review of agency agency contingency plans for the current shutdown and past experience with previous shutdowns and near-shutdowns. Download PDF summary.

Latest Status Information

(as of Oct. 3, 2013 2PM ET)
Internal Revenue Service (IRS)
The IRS is closed and has suspended the processing of all forms, including requests for tax return transcripts (Form 4506T). While FHA and VA do not require these transcripts, they are required by many lenders for many kinds of loans, including FHA and VA, so delays can be expected if the shutdown is protracted…

Social Security Administration (SSA)
The Social Security Administration is closed and has suspended most customer service functions. According to the SSA Contingency Plan, verifying Social Security numbers through the Consent Based SSN Verification Service will also be suspended during the shutdown, a further complication for mortgage processing…

Additional Status Information

(as of Oct. 1, 2013 7AM ET)
Federal Housing Administration
HUD’s Contingency Plan states that FHA will endorse new loans in the Single Family Mortgage Loan Program, but it will not make new commitments in the Multi-family Program during the shutdown..

VA Loan Guaranty Program
Lenders will continue to process and guaranty mortgages through the Loan Guaranty program in the event of a government shutdown. Expect some delays during the shutdown.

Flood Insurance
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown…

Rural Housing Programs
For the U.S. Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees, and modification approvals. Thus, lenders will not receive approvals during the shutdown…

Government Sponsored Enterprises
Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency, since they are not reliant on appropriated funds.

The Making Home Affordable program, including HAMP and HAFA, will not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.