Government Shutdown: What It Means For Eugene Real Estate

If you are buying or selling in Eugene or anywhere in Lane County, a federal government shutdown can feel confusing. The good news is that many parts of a real estate deal keep moving. The caution is that a few federal touchpoints can slow things down. Here is what that looks like here at home and how to stay on track.

First, what keeps moving

• Showings, offers, inspections, title and escrow all continue as usual

• Lane County recording stays open

• Conventional loans from private lenders continue, though some verifications may take longer

The parts that can slow down

USDA loans
USDA typically pauses new guarantees during a shutdown. If your home is in a USDA-eligible area around Lane County like Veneta, Creswell, Junction City, Cottage Grove, or outside city limits, your file may wait until USDA staff are back. If you already have your USDA conditional commitment, you are in better shape than someone who does not.

FHA and VA loans
These programs usually keep operating with slimmer staffing. That can mean slower responses on case numbers, appraisals, or clarifications.

Tax transcript and identity checks
Lenders often pull IRS and SSA verifications. With limited staffing, they may use approved workarounds or need more time.

Flood insurance
If a property requires flood insurance and the National Flood Insurance Program is impacted, closings can wait unless your lender accepts a private flood policy.

What buyers can do right now

1. Ask your lender which program you are using and where your file sits today.

2. If you are using USDA and do not have a conditional commitment yet, ask about switching to FHA or conventional temporarily, or plan for a contract extension.

3. Build a little timeline cushion for appraisals and federal verifications.

4. If the home is in or near a flood zone, ask your lender if private flood coverage is acceptable while NFIP is limited.

5. Stay inspection-ready so you are not the reason a file stalls when the federal side reopens.

What sellers can do

1. Find out the buyer’s loan type early. If it is USDA without a commitment yet, expect an addendum to extend timelines or be open to a financing switch.

2. Keep your home inspection-ready and complete agreed repairs quickly so you are not adding days.

3. Communicate with your escrow officer about any lender or insurance items tied to federal agencies.

Eugene-specific notes

• USDA eligibility often starts just beyond city limits. Think Veneta, Junction City, Creswell, Cottage Grove, and parts of rural Springfield and Elmira.

• Conventional buyers inside Eugene or Springfield are less likely to feel direct slowdown, but IRS transcript delays can still add a few days.

Sample language you can use

Email to your lender
“Hi, I am under contract at [address]. Can you confirm whether my loan requires any federal verifications that could be delayed during the shutdown and whether there are approved alternatives so we can keep our timeline?”

Addendum idea for timelines
“Buyer and Seller agree to extend all financing-related deadlines by up to X calendar days for delays caused solely by federal agency closures or service reductions.”

Frequently asked

Will my earnest money be at risk if the loan is delayed because of the shutdown?
Earnest money is governed by your contract deadlines and contingencies. If financing or USDA timelines are impacted, we use an extension addendum before a deadline expires so you remain protected.

Should I switch loan programs?
Sometimes. If USDA is the only holdup and you qualify for FHA or conventional with similar terms, a temporary switch can save your closing date. Your lender can price this out for you.

Can we still close on time?
Many deals still close on schedule. The key is early communication with your lender and escrow, and a little flexibility on dates.

Bottom line for Lane County

Real estate does not stop during a shutdown, but files that touch USDA, NFIP, or certain federal verifications can slow. Stay proactive, keep everyone talking, and build in a modest buffer. Most “shutdown problems” are timing problems, and timing problems are solvable.

Let’s talk about your situation

Every file is a little different. If you are buying or selling in Eugene, Springfield, or the surrounding communities and want a quick plan for your specific loan type and timeline, reach out. I am happy to look at your contract and map the cleanest path to the closing table.