Key Takeaways
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VA loans remain largely unaffected during the 2025 government shutdown.
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USDA loans may face delays, and FHA approvals could slow in specific cases.
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Mortgage rates could fluctuate due to delayed economic reports.
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Communication with your lender is essential to protect your home and credit.
The 2025 government shutdown has left many Veterans wondering how it affects VA home loans, VA benefits, and mortgage processing. Fortunately, most VA loan programs continue with minimal disruption, allowing Veterans to still purchase or refinance a home using their VA benefits. Understanding the impact of the shutdown, along with how other loan programs are affected, can help Veterans make informed financial decisions.
VA Loan Operations During the Shutdown
Despite the shutdown, VA lending remains largely operational. Lenders can still:
| VA Loan Function | Status During Shutdown |
| Order VA appraisals | Fully operational |
| Obtain Certificate of Eligibility (COE) | Fully operational |
| Submit VA Funding Fee | Fully operational |
| Process and close purchase or refinance loans | Fully operational |
During the 2018–2019 shutdown, some lenders reported minor documentation delays. However, roughly 97% of VA employees stayed on duty, ensuring most VA home loan operations continued uninterrupted.
How Other Loan Programs Are Affected
While VA loans remain stable, other government-backed and conventional loan programs face varying levels of disruption:
| Loan Type | Impact During Shutdown | Notes |
| FHA Loans | Minimal | Regional HUD office closures may delay condo approvals or unique cases. |
| Conventional Loans | Minimal | Typically unaffected since they are not government-backed. |
| USDA Loans | Significant | New USDA guarantees are paused, potentially delaying conditional commitments. |
Borrowers using USDA loans should contact their lender to confirm loan status and discuss backup options.
VA Benefits and Services During the Shutdown
The VA Loan Guaranty Program and most veteran benefit programs continue to operate. Key services that remain open include:
- VA medical facilities and clinics
- VA national cemeteries and burials
- Processing compensation, pension, education, and housing benefits
- Appeals through the Board of Veterans’ Appeals
Some services may pause temporarily, including career counseling, transition support, health care inspections, and community outreach programs. Veterans can consult the VA’s official contingency plan for full details.
Economic Impacts and Mortgage Rates
The shutdown may delay important economic reports such as the jobs report, inflation data, and GDP updates. These reports guide the Federal Reserve in setting interest rates. Delays can cause uncertainty and short-term volatility in mortgage rates, including VA home loan rates.
What Veterans Should Do During a Shutdown
Even though VA loans remain active, extended shutdowns could create financial challenges for some homeowners. During prior shutdowns, the VA recommended lenders offer:
- Forbearance options
- Waivers of late fees and penalties
- Pausing negative credit reporting
- Direct borrower support to find payment solutions
Veterans concerned about their mortgage payments should contact their servicer immediately to discuss available options and protect both their home and credit.
FAQs About VA Loans During a Government Shutdown
No SSN required. Zero impact to credit. Your Information is never sold.
