Are VA Loans Being Delayed During a Government Shutdown?

With the government shutdown, are VA loans being stalled right now?

My name is Evan Kaufman, and I’m here to help explain.

The short answer is no—but with an asterisk. There are a few things you should still be aware of because some parts of the process can experience delays.

First and foremost, the Department of Veterans Affairs is funded differently than many other parts of the federal government. As a result, VA home loan operations generally continue even during a government shutdown.

It’s similar to how active-duty military members continue serving and receiving pay, even while many civilian government employees may be furloughed.

It’s also important to remember that VA home loans are not funded directly by the VA. Private lenders—like us—provide the mortgage financing, while the VA guarantees a portion of the loan.

That VA guarantee remains in place during a government shutdown. We can still obtain Certificates of Eligibility (COEs), communicate with the VA, and continue processing and closing most VA loans.

However, there are a few exceptions.

We’ve seen situations where certain departments within the VA operate with reduced staffing during a shutdown. Some employees may be furloughed, which can slow down specialized processes.

For example, certain legal review items or other cases requiring manual review by the VA may take longer than usual if those teams are operating with limited personnel.

So, if your loan involves a unique circumstance that requires additional VA review, you could experience some delays.

For the vast majority of borrowers, though, VA loans continue moving through the process, and we expect to keep closing loans without significant disruption.

If you have any questions about your specific situation, feel free to reach out. We’re always happy to help guide you through the VA loan process.

My name is Evan Kaufman.

Take care.