Government Shutdown and Dallas Real Estate: What Buyers & Sellers Need to Know

When you hear “government shutdown,” it might sound like the end of the world but don’t panic. The lights will stay on, and daily life will continue. That said, if you’re buying or selling a home in the Dallas metroplex, there are real impacts you need to be aware of. Some transactions could see delays, and others could come to a full stop depending on the details of your deal.

Here’s what you need to know right now:

The Biggest Impact: Flood Insurance

The National Flood Insurance Program (NFIP) reauthorization ran out October 1st, and that’s a big deal.

• If your transaction requires flood insurance, you cannot close until the program is reauthorized.

• New policies can’t be issued, and existing policies can’t be renewed or modified during the lapse.

• Current policies remain valid—so check your expiration date.

• If you’re selling a home that requires flood insurance, and your buyer can’t close, that may also stall your new purchase if it’s contingent on the sale.

• The good news? Private flood insurance is not impacted. If you’re affected, explore private options quickly.

Moderate Impacts: Expect Delays in Loan Processing

Many home loans require verification from federal services, and that’s where delays may pop up.

• Social Security & VA Benefits – Benefits will still be paid, but verification services may slow down.

• IRS – Income verification and tax transcript services could be delayed.

• USDA Rural Loans – The Direct Program could be heavily impacted since it’s government-run. Guaranteed Programs may fare better but can still slow down.

• VA/FHA Loans – Likely to keep moving, but with fewer staff, expect longer wait times on appraisals, case numbers, and any exceptions requiring manual processing.

Unknowns and Other Considerations

Some impacts aren’t fully clear yet, but here’s what buyers and sellers in Dallas should keep an eye on:

• Federal Employees – Many are furloughed or working without pay. If your buyer or seller is a federal worker, this could impact income verification or even their ability to qualify.

• Bankruptcy, Foreclosures & Tax Liens – Expect slower verification timelines.

• Rate Locks – If your closing is delayed, you may face costs for extending your rate lock.

• Earnest Money – If financing falls through after your approval period, you could risk losing earnest money. Talk to your agent (hi 👋) before that window expires.

What This Means for Dallas Buyers & Sellers

• Buyers – Double-check if your loan type or property location could be affected. Ask your lender now about backup options and private insurance alternatives.

• Sellers – If your buyer’s financing depends on flood insurance, federal verifications, or USDA loans, prepare for possible contract extensions.

• Both – Communication is key. Work closely with your lender, title company, and agent so you’re not caught off guard.

Bottom Line

A government shutdown isn’t the apocalypse—but it can throw a wrench in your real estate plans if you’re not prepared. The Dallas market is still moving, but time is not our friend in real estate transactions. Staying proactive is the best way to protect your deal.

If you’re buying or selling right now and want to talk through how this might affect your specific situation, I’m here to help.

📲 Call/text me at (469) 991-1566 or Click Here to schedule a consultation.