T
he longer a federal shutdown lasts, the more uncertainty it injects into the home‑buying and selling process, warns Denise Lewis, president of Maryland Realtors—a nonprofit that represents more than 25,000 agents across the state. “Both buyers and sellers will feel the impact,” Lewis told WTOP, adding that nothing is coming to a screeching halt.

    The first ripple is felt in flood insurance. The National Flood Insurance Program (NFIP) cannot issue new or renewal policies while the shutdown continues. Realtors are learning workarounds: they’re reaching out to private insurers for coverage and exploring the transfer of existing NFIP policies to buyers. However, transfers are blocked during the 30‑ to 60‑day renewal window.

    USDA loans are largely paused. While prospective buyers can still identify the program and obtain preliminary figures, no new USDA loans are being originated or closed until the shutdown ends. VA‑guaranteed mortgages remain available, but staffing cuts may slow appraisals, approvals, and the issuance of eligibility certificates.

    If the shutdown stretches beyond a month, a backlog could build in loan approvals and flood‑insurance issuance. NFIP funding could deplete, delaying claim payments. Local governments may see reduced revenue from transfer taxes and recordation fees, with rural and coastal communities likely to feel the sting most acutely.

    Lewis stresses that the best defense for anyone buying or selling is to stay informed. “Talk to your realtor and find out what developments could affect you,” she advises.