Government Shutdown: What North Texas Buyers and Sellers ACTUALLY Need to Know Right Now

Bobby Franklin – REALTOR® | Legacy Realty Group – Leslie Majors Team

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Listen, I’m going to cut through the noise and give you the real story about this government shutdown because while everyone else is panicking or pretending it doesn’t matter, I’m going to show you exactly how to turn this chaos into your competitive advantage.

Here’s the thing most agents won’t tell you: disruption creates opportunity. Always has, always will.

The federal government shut down on October 1, 2025, first time in 7 years. And yes, it matters for your real estate plans. But not in the way the headlines want you to think.(First Shutdown 7 Years)

Let’s Talk About What’s ACTUALLY Happening

A government shutdown isn’t the apocalypse. It’s a temporary dysfunction in how federal agencies operate. Non-essential services pause. Essential ones keep running. And somewhere in the middle sits your home purchase or sale.

Since 1976, we’ve had 20 of these shutdowns. The longest one was 35 days from December 2018 to January 2019 and it cost the economy $11 billion. Home sales dipped, then rebounded. The market survived. It always does.(20 Shutdowns Since 1976)

But here’s what I’m watching: The people who understand what’s happening RIGHT NOW are the ones who win in this market. And I’m about to make you one of those people.

The Mortgage Situation: Let’s Get Specific

Conventional Loans – You’re Probably Fine

Most North Texas buyers use conventional loans backed by Fannie Mae and Freddie Mac. Good news: these operate independently of congressional drama. Your loan processing continues.

The catch? Lenders still need to verify your information through federal agencies like the IRS, Social Security Administration. Those verifications? They’re getting slower.

The move: Get your documentation in EARLY. Don’t wait for your lender to ask twice.

FHA Loans – Expect Delays, Plan Accordingly

If you’re a first-time buyer using an FHA loan, we need to talk strategy. The FHA keeps working with reduced staff, but here’s what’s slowing down:

• Loan approval processing times
• Certificate of reasonable value delays
• Income verification complications
• Extended closing timelines

The reality: Your 30-day close might become 45 days. Build that into your planning NOW, not when you’re supposed to move.

VA Loans – Service members, You’re Still Good

VA loans keep running because they’re funded by user fees, not congressional appropriations. But the VA is warning about delays in:

• Loan guarantee certificates
• Certificates of eligibility
• Appraisal processing

For our veterans: You’re in better shape than most, but don’t assume your timeline is bulletproof.(VA Loans Govt Shutdown)

USDA Rural Loans – This One’s a Problem

Rural development loans? They’ve hit a wall. New loan guarantees are completely halted. If you’ve got a conditional commitment already, you might close. If you’re just starting the process? We need to look at alternatives.(USDA Loans Halted)

The Flood Insurance Situation—This Is Where It Gets Interesting

Here’s a curveball most people aren’t tracking: The National Flood Insurance Program loses authority during shutdowns. No new policies. No renewals.

Why this matters: Lenders require flood insurance for properties in flood zones. No insurance? No loan. No loan? No closing.

The National Association of Realtors estimates 1,300 property sales are affected DAILY. (How FIP Is Affected)

In North Texas, this hits:

• Properties near the Trinity River and tributaries
• Lake areas around Lewisville, Grapevine, Joe Pool
• Anything in FEMA-designated Special Flood Hazard Areas

The strategic play: If you’re buying in these areas, we need to explore private flood insurance options NOW. Some lenders accept it. Some don’t. Finding out at the closing table is not the plan.

Income Verification: The Hidden Bottleneck

Mortgage lenders verify your income by requesting tax transcripts from the IRS. During shutdowns:

• IRS processes requests for about five days, then it gets murky
• Social Security verifications slow down
• E-Verify suspends operations
• Your loan approval timeline extends

What you need to do: If you’ve got tax transcripts, W-2s, pay stubs, get them to your lender proactively. Don’t wait to be asked.

Mortgage Rates During Shutdowns – The Contrarian Opportunity

Here’s something counterintuitive: Government shutdowns often LOWER mortgage rates.

Why? Market uncertainty sends investors running to safe assets like Treasury bonds. When demand for Treasuries rises, yields fall. When yields fall, mortgage rates typically follow.

Historical data shows the 10-year Treasury yield has fallen an average of 0.59% during shutdowns since 1976.(Mortgage Rates Dip During Shutdowns)

Current situation:

• 30-year fixed rates hovering around 6.34%
• Rates have stabilized in the low-6% range recently
• If this shutdown drags on, we could see rates dip into the 5% range

The strategic angle: If you’ve been waiting for rates to improve before buying, this disruption might create your window. But you need to move fast and have your financing squared away.

Federal Employees in DFW – Let’s Address This Directly

The Dallas-Fort Worth metroplex has significant federal employment. If you’re a federal employee facing furlough:

Your challenges:

• Income uncertainty complicates loan qualification
• Making mortgage payments during unpaid periods
• Timing home purchases around employment instability

Your options:

• Communicate with lenders EARLY about your situation
• Explore rate lock extensions
• Consider delaying purchases until resolution (if timeline allows)
• Document everything—you’ll get backpay, lenders know this

What North Texas Buyers Should Do RIGHT NOW

1. Contact Your Lender Today

Not tomorrow. Today. Ask:

• What specific delays should I expect?
• Do you have alternative documentation processes?
• Can we extend my rate lock if closing delays?
• What’s your shutdown contingency plan?

2. Loop In Your Agent (That’s Me)

We need to discuss:

• Contract modification options for extended closing periods
• Contingency clauses that apply during government disruptions
• Backup plans if your transaction hits serious delays
• Alternative financing if your loan type is heavily impacted

3. Build Flexibility Into Everything

• Add 2-3 weeks to your expected closing timeline
• Have backup housing if your closing delays
• Keep extra cash liquid for extended processes
• Stay glued to shutdown news—things change fast

4. Document Everything Like a Lawyer

• Save every email, text, and conversation about shutdown impacts
• Keep organized files for faster processing when services resume
• Track any costs incurred due to shutdown delays
• Build your paper trail NOW

Guidance for North Texas Sellers: Turn This to Your Advantage

Price Strategically, Not Emotionally

Buyer uncertainty is real. Overpriced homes will sit while buyers wait for lending stability. Competitive pricing wins in uncertain markets.

Become the Flexible Seller Everyone Wants

• Offer extended closing deadlines in contracts
• Accommodate buyer financing delays without drama
• Keep your property available for showings
• Be the seller who makes deals happen, not the one who kills them

Cash Buyers Are Your New Best Friends

Cash buyers face almost zero shutdown-related obstacles. If you get a cash offer, take it seriously. Very seriously.

Long-Term Market Implications: What History Teaches Us

Short Shutdowns (1-2 Weeks)

Minimal lasting impact. Transactions resume smoothly when services restart. Market barely notices.

Extended Shutdowns (3+ Weeks)

Now we’re talking real effects:

• Consumer confidence erosion
• Delayed or cancelled sales
• Price softening in federal employment-heavy areas
• Overall market activity slowdown

The 2018-2019 lesson: The 35-day shutdown caused noticeable sales declines, especially in government-heavy markets. But most transactions eventually rebounded. Some deals were lost permanently, but the market recovered.

The Professional Advantage & Why Experience Matters More Than Ever

Here’s what separates average agents from elite advisors during market disruptions:

I understand:

• Which loan types face the biggest shutdown impacts
• How to navigate lender challenges and bureaucratic delays
• Contract modification strategies that protect YOUR interests
• Alternative approaches when standard processes break down
• Deep local market knowledge that offsets broader uncertainty

Most agents panic during disruption. The best agents see opportunity.

Which one do you want representing you?

When Does This End?

Government shutdowns typically resolve through temporary funding measures while longer negotiations continue. The timeline depends on:

• Political negotiation progress
• Public pressure intensity
• Key federal pay dates (especially military paychecks)

My prediction: This gets resolved before it becomes the longest shutdown in history. But I’m planning for the worst-case scenario so you’re protected either way.

Bottom Line: The Market Doesn’t Stop

The 2025 government shutdown is a temporary disruption in an otherwise resilient North Texas real estate market. Yes, some loan types face challenges. Yes, flood insurance creates complications. Yes, federal employees have unique considerations.

But here’s the truth: Real estate deals are still happening. Homes are still selling. Buyers are still buying.

The difference is WHO is winning these deals—and it’s the people who understand what’s happening and adjust their strategy accordingly.

Your Action Plan

If you’re buying:

1. Contact your lender immediately
2. Get your documentation organized and submitted
3. Build extra time into your timeline
4. Communicate constantly with all parties
5. Stay flexible but determined

If you’re selling:

1. Price competitively from day one
2. Be the accommodating seller buyers want
3. Consider cash offers seriously
4. Extend timelines when needed
5. Keep your property market-ready

If you’re thinking about buying or selling:
This disruption might actually create your opportunity. Let’s talk about whether NOW is your time to move.

Let’s Have a Real Conversation

Government shutdowns don’t change the fundamentals: People still need homes. Families still grow. Jobs still relocate people. Life still happens.

What changes is HOW we navigate the process. And that’s where having someone who’s five steps ahead of the chaos makes all the difference.

If you want a straight-shooting advisor who turns market disruption into competitive advantage, let’s talk.

📊 Get market moves before they hit the news
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Bobby Franklin – REALTOR®
Legacy Realty Group – Leslie Majors Team
Serving Ellis County & DFW

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This analysis reflects current information as of October 2025. Real estate and mortgage conditions evolve rapidly during government shutdowns. This content is for educational purposes and doesn’t constitute legal or financial advice. Always consult licensed professionals for personalized guidance.

About Bobby Franklin:
Licensed Texas REALTOR® serving Ellis County and the Dallas-Fort Worth metroplex. Specializing in turning market chaos into client opportunities through strategic intelligence and relentless execution.