What the Government Shutdown Means for Home Buyers and Sellers in Bradenton & Sarasota

As of midnight on September 30, Congress failed to pass funding to keep the federal government fully operational, triggering a partial government shutdown. This may seem like D.C. drama, but for buyers, sellers, and homeowners here in Bradenton and Sarasota, it has real-world impacts—especially in the areas of mortgage processing, flood insurance, and government-backed loan programs.

Here’s a quick rundown of how this affects our local real estate market, based on updates from the National Association of REALTORS® (NAR)

What You Need to Know:

✅ FHA Loans (Including First-Time Buyer Programs)
Good news—most FHA loans will continue to be endorsed, meaning buyers can still move forward. However, some processes, like certain condo approvals and reverse mortgages (HECMs), are on hold. Expect longer wait times for support and case-specific questions.

✅ VA Loans Still Moving
Veterans can still purchase homes using VA loans. That said, some delays may occur in appraisals and certificate approvals due to reduced staffing.

✅ Fannie Mae & Freddie Mac
These government-sponsored entities are still operating normally, so conventional loans are largely unaffected. However, verifying IRS tax transcripts or employment for federal employees could be delayed.

🚫 USDA Loans Are Paused
If you’re buying in a rural area using a USDA loan, no new loans are being issued during the shutdown. Some closings may move forward—but only at the lender’s risk.

🌊 Flood Insurance
The National Flood Insurance Program (NFIP) may not issue new or renewal policies during the shutdown. If you’re buying a home in a flood zone, talk to your insurance agent ASAP—private flood insurance may be your best bet.

📉 IRS & SBA
The IRS is expected to offer very limited services, which can delay income verification for loans. Meanwhile, new SBA loans (like 504 or 7(a)) are paused, which may affect commercial and investor clients.

🏡 HUD & Public Housing Vouchers
Section 8 vouchers and similar programs will continue—for now. But prolonged shutdowns could strain resources for landlords and tenants. If you rent out or manage subsidized housing, stay in touch with your local PHA.

Why This Matters

When the gears of government slow down, it trickles into the real estate world. From mortgage approvals to insurance coverage, we’re seeing potential delays and uncertainty—but also workarounds and alternatives that experienced agents (like me!) can help you navigate.

Let’s Talk Now

If you’re thinking about buying, selling, or investing in Bradenton or Sarasota—or even just considering it—let’s talk now so we can avoid any surprises from the shutdown.

✅ Have a friend or family member in the process of buying or selling a home?
✅ Know someone relying on FHA, VA, or flood insurance?
✅ Working with someone unsure about next steps?

Send them my way. I’ll make sure they’re protected, informed, and moving forward.

Call or text me today to schedule a chat.   Whether you’re closing next week or just starting your journey, I’m here to guide you through the market—even when Washington isn’t.

Let’s keep things moving.