Will a DC Shutdown Stall Greenville Closings? Stan’s Quick Guide + $250 Giveaway Update

As the federal government inches toward another drawn-out shutdown, questions are swirling about what that could mean for Greenville’s housing market. Will deals fall through? Will buyers lose financing? And what about loans backed by programs like FHA, VA, or USDA?

In this episode of Selling Greenville, Realtor Stan McCune breaks down what a government shutdown really means for real estate—and more importantly, what parts of the market can keep moving even when Washington doesn’t. (Because apparently, the only thing less predictable than mortgage rates is Congress.)

Understanding the Impact of a DC Shutdown

When people hear “DC shutdown,” they often picture a total halt—a locked-down Washington where everything stops overnight. But as Stan explains, it’s more of a scale-back than a blackout. Essential operations continue, but the ripple effects reach industries like housing faster than you might think (because when the government sneezes, real estate catches a cold).

Some transactions will barely notice the difference (others, however, might feel like they’re stuck in traffic behind a DMV line). Others—particularly those involving federal loan programs or flood insurance—could slow down or even stall until agencies reopen.

The EPA: Minimal Greenville Impact (Unless You’re Eating Paint Chips)

The Environmental Protection Agency will furlough most employees, halting activities like wetlands determinations and lead paint compliance enforcement. But Greenville homeowners can breathe easy—those aren’t major factors in most Upstate transactions.

Stan notes that while Greenville has older homes, it’s nearly impossible to get a positive lead test now thanks to decades of repainting. “Just don’t eat the paint chips,” he jokes, emphasizing that lead issues rarely derail deals locally. (Apparently, that’s one ‘flaky’ problem most buyers won’t face.)

HUD and FHA: Still Moving, but Expect Delays

The Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) will continue most core functions—like endorsing new single-family loans—but some processes that require staff approval will pause.

That includes condo project approvals, which could delay closings on certain properties. For Greenville buyers using FHA loans, most transactions will still move forward, but anything needing human verification (like specific documentation or loan clarification) might take longer.

The takeaway: expect slower responses, not total shutdowns.

Fannie Mae & Freddie Mac: The Engines Keep Running

Good news—Fannie Mae and Freddie Mac operate independently of federal appropriations, so their systems will remain functional. However, buyers relying on federal employment verification or tax transcripts might hit snags.

• Verification of Employment: Federal workers may face delays confirming their job status.

• Tax Transcripts: During a shutdown, the IRS usually pauses transcript processing, which can delay closings for buyers who need income verification (because of course the one time you really need paperwork, the government decides to take a nap).

• Social Security Verification: Some loans need a quick confirmation of Social Security numbers—but that can slow down, too (turns out even your identity has to wait its turn in line).

Bottom line—Greenville buyers might need to extend closing timelines or get creative with lender coordination (think of it as the real estate version of airport layovers—same waiting, fewer free snacks).

IRS and Flood Insurance: The Real Bottlenecks

The IRS is notorious for slowdown drama, and a shutdown won’t help. During past closures, only a small portion of staff continued working, and their main priority was opening mail to find government checks. That means refunds, lien releases, and transcript requests can all be delayed.

Meanwhile, the National Flood Insurance Program (NFIP) faces even more serious implications. During a lapse, the NFIP cannot issue new or renewed policies (basically, flood insurance takes a rain check—pun very much intended). Existing ones stay valid until expiration, but that leaves a critical gap for buyers closing on homes in flood zones.

Stan advises Greenville-area buyers to explore private flood insurance options or consider transferring an existing NFIP policy from seller to buyer—a temporary workaround if the shutdown drags on. (Because nothing says “dream home” like an underwater policy problem.)

USDA Loans: The Hard Stop

The USDA Rural Housing Program—a popular zero-down loan option for rural buyers—completely halts during a shutdown. No new loans, no guarantees, no closings.

“If you’ve got a USDA loan in progress, call your lender now,” Stan warns. “It’s not a ‘maybe’—it’s a guarantee that it’ll be delayed.”

That advice also applies to Realtors representing USDA buyers: communicate early and plan for potential rescheduling.

VA Loans: Still Guaranteed, But Slower

The Department of Veterans Affairs will continue guaranteeing VA loans, but staffing cuts mean delays in appraisals, approvals, and certificates of eligibility. Buyers using VA financing should pad their closing dates—ideally up to 45 days, or even 60 if sellers allow it.

Stan explains that these longer timeframes aren’t a reflection of the buyers or lenders—it’s just the reality of processing during limited operations.

SBA Loans and Work Visa Programs

The Small Business Administration (SBA) will not process new or routine small business loans, though previously approved loans might still close. For those buying commercial properties or using business credit to finance investments, this could cause headaches.

Visa programs like EB-5 and H-2B—important for foreign investors and seasonal workers—will also freeze, impacting some niche real estate transactions.

How Common Are Delays, Really?

According to a National Association of Realtors survey, 75% of agents reported no impact from past shutdowns. But around 11% saw delays with clients or pending contracts.

While those odds may seem comforting, real estate has a way of defying averages. As Stan says, “This industry runs on Murphy’s Law—if it can happen, it will happen.”

So far, his own clients haven’t faced issues, but he remains cautious. “I’m knocking on wood that it stays that way,” he adds, half-jokingly (because in real estate, superstition sometimes feels like a closing strategy).

The Flood Insurance Program: A Recurring Battle

Beyond the shutdown, flood insurance remains a recurring political football. The National Flood Insurance Program expires every year and must be renewed through legislation—a process that regularly comes down to the wire.

Stan points out that removing or delaying the program could devastate home values in floodplains, as private insurers can’t immediately fill the gap. Without NFIP backing, many homes could lose insurability—or face skyrocketing premiums.

“It’s not about whether the government should run it,” Stan notes. “It’s about how quickly the private market can adapt if it disappears overnight.”

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Bottom Line

The impact of a DC shutdown on Greenville real estate closings depends on how deeply your deal involves federal programs. FHA, VA, and conventional loans will mostly keep moving; USDA loans and flood insurance, not so much.

For now, patience, communication, and flexibility are the name of the game. As Stan puts it, “Don’t panic—it’ll pass. Just maybe not on schedule.” (Because if there’s one thing that doesn’t close on time, it’s Congress.

Ien Araneta

Journal & Podcast Editor | Selling Greenville