A government shutdown halts FHA, VA, and USDA loan approvals because federal employees are furloughed, delaying home closings. In Northern Michigan counties like Leelanau and Grand Traverse, where USDA loans are common, sellers could face months of delays that push sales into the off-season. Sellers under contract should check the detailed blog post for a shutdown checklist.
If this shutdown continues, as we've said, layoffs are an unfortunate consequence of that. Millions of Americans this morning feeling the pain.
Ever feel like Washington, D.C. can just grind things to a halt? Well, it can grind your home sale to a halt too. Yep, when the government shuts down, Northern Michigan real estate doesn't get a free pass. And if you've got a buyer using an FHA, VA, or USDA loan, your closing could be in the crosshairs. Here's the deal. Shutdowns mean federal workers get furloughed and suddenly nobody's around to issue FHA endorsements, USDA commitments, or even tax transcriptions. It's like trying to close on a house while the lights are off in half of the offices that keep the deals moving. Meanwhile, conventional loans usually keep chugging along. But in places like Leelanau, Benzie, Grand Traverse Counties, where USDA loans and flood insurance are common, sellers can find themselves waiting and waiting and waiting while the fall selling season just slips away. And trust me, nobody wants to be stuck moving boxes in January in northern Michigan. I've been there and it is not fun. If you're under contract right now or thinking about selling soon, you've got to know where the risks are and how to protect yourself. That's why I wrote a full breakdown on my blog with a seller-friendly checklist and some myth-busting facts that you need to know. The link's in the comments. Click it, read it, and you'll be ahead of the curve.
