Government Shutdown & Mortgages in Idaho: What Buyers, Sellers, and Realtors Should Know

When news breaks about a possible government shutdown mortgages Idaho buyers and Realtors immediately worry about loans and rates. Will FHA, VA, or USDA loans stall? Could mortgage rates move higher? The truth is that shutdowns affect some programs more than others, but history shows mortgage rates in Idaho usually stay steady or even drop slightly. This post explains what happens and how to prepare.

What changes (and what doesn't)

• Conventional (Fannie/Freddie): Loans continue. These agencies are not dependent on annual budgets. Lenders may use alternative documentation if IRS services slow.

• FHA: Endorsements and case numbers move forward but with fewer staff. Expect potential delays.

• VA: VA loans remain available. Circulars are usually issued to guide lenders during shutdowns.

• USDA/Rural Development: New loan guarantees pause until staff return. This can delay rural Idaho closings.

• IRS Transcripts: The IVES system often pauses, causing transcript delays. Some lenders accept paystubs and W-2s instead.

• Flood Insurance (NFIP): If authorization lapses, new policies cannot be issued. Closings in flood zones along the Boise River or Canyon County may stall without private flood coverage.

Mortgage rates during past shutdowns

A government shutdown doesn't directly set rates. Markets drive them. Still, shutdowns often lead to missing economic data and "flight to safety" moves into Treasuries. That can nudge rates sideways or lower.

• October 2013 shutdown (16 days): The average 30-year mortgage rate hovered around 4.22% during the standoff and slipped to 4.13% after.

• 2018 - 2019 shutdown (35 days): Rates were already easing with a Fed pivot. Freddie Mac's average fell into the mid-4% range during the shutdown and stayed there.

Bottom line: in past shutdowns, rates in Idaho were influenced more by Treasury yields and inflation than by the shutdown itself.

How this plays out in Idaho

For buyers and Realtors:

• Check loan program early. USDA may pause, so have FHA or Conventional as backup.

• Gather income docs quickly. IRS transcripts may be slow, but W-2s and VOEs can keep things moving.

• Verify flood zone status. If NFIP pauses, consider private flood coverage as a safety net.

• Build in extra days for FHA or VA loan touches.

For sellers and listing agents:

• Favor buyers using loan programs less affected by staffing cuts.

• Use addenda that account for possible delays from government services.

Will a shutdown make Idaho rates jump?

Not likely. A shutdown by itself rarely moves the needle. Inflation data, Fed actions, and global markets matter more. Sometimes, delayed reports during a shutdown even calm rates temporarily.

Idaho Mortgage Shutdown Checklist

• Confirm program choice (backup if using USDA).

• Pull flood certification early.

• Gather income docs before ordering transcripts.

• Allow extra time on FHA and VA loans.

• Track weekly Freddie Mac PMMS updates.

FAQ

Do VA loans keep moving?
Yes. VA loans have historically continued during shutdowns.

Can I close an FHA loan?
Usually, but expect longer processing times.

What about USDA loans?
They pause until funding resumes.

Will IRS transcripts be available?
Not right away. Some lenders will use alternative documents.

Can I buy flood insurance?
Only if NFIP remains authorized or private coverage is available.

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