The Government Shut Down and Your Mortgage | Equity Prime Mortgage

The Government Shut Down and Your Mortgage



The government has officially shut down and with that comes concern all around for what happens (in general), but what happens to your mortgage?

First, don’t panic. This has happened before, in 2013, and the industry recovered. Second, be patient. This may take a while, the last shut down lasted 16 days. Get your ducks in a row and make sure you are as organized as you can be, so that when it’s over you can pick up where you left off. Lastly, read our list…


  • The IRS Is Closed- When the government shuts down, the main offices that potential home owners need to worry about are the IRS and Social Security office’s. This means that verifying and obtaining tax documents and other information will be paused (and ultimately backed up) when the offices re-open.
  • The Banks Are Open- while banks and financial institutions are open, when the government shuts down all the paper work you filled out cannot be verified (see 1.)
  • FHA/VA Loans- your loan could be delayed, because workers from these departments will not report to work on Monday. You can check the FHA FAQ site to find out more.
  • Call Your House Buying Team- Contact your LO, realtor, closing agent (builder/seller) if you think your loan is at risk, ask for a contract extension on your closing, ask what, if any, effect the shutdown may have on your home buying status.
  • Sellers may suffer- In the last shutdown 3% of sellers were offered less for their homes, because buyers felt unsure about the market.

The Good News: bankers and lenders may lower mortgage rates to attract more business once the government re-opens. You could find the house of your dreams for a dream price, provided the shutdown goes on for a while, so maybe not the best news…


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