A Federal Employee Faces A Once-In-A-Lifetime Ordeal—Closing On A House While Being Furloughed. ‘This Is Not The Time To Be Closing On A Home’

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A federal employee trying to buy a house just hit a major roadblock: a furlough. With the federal government shut down, one person took to Reddit to ask for advice while caught between a mortgage deadline and a paycheck freeze.

“We’re in the underwriting process, and the mortgage contingency deadline is coming up in a few days,” the poster explained. “Closing date is in a month.”

The underwriter had already verified income through pay stubs, but one crucial step remained: verbal verification of employment. “I’m nervous we’d be losing my deposit if the lender backs out days before closing,” they said.

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Many commenters zeroed in on that final employment verification. “That verbal confirmation can cause issues,” one person warned. “It will be done just before your closing, so will the gov’t be running again?”

Others pointed out the danger of assuming back pay is guaranteed. “I wouldn’t count on getting back pay,” one person wrote. “We aren’t exactly following laws anymore.”

The strongest and most repeated advice? Contact your loan officer immediately. Several commenters noted that loan officers, not real estate agents, are the ones who can provide accurate information and possibly work around furlough issues. “Each agency has issued guidance on how to handle furloughed employees,” one person wrote. “Only your loan officer can answer this.”

Another said they closed successfully while furloughed, but used a local lender writing loans in-house. Still, many cautioned that approval often depends on the specific loan program and lender flexibility.

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A few commenters pointed out that if the loan falls through, the mortgage contingency clause in the purchase contract might protect the deposit. “Shouldn’t lose your deposit if your financing gets denied,” one person noted. But others warned that it depends entirely on how the contract is written.

The original poster clarified that the mortgage contingency deadline was Oct. 14, while the closing date is Nov. 14. Commenters encouraged asking for an extension to the contingency to avoid being left exposed.

Some commenters raised bigger-picture concerns. “This is not the time to be closing on a home,” one person bluntly wrote.

Others warned that political instability and long-term job uncertainty under the current administration make this a uniquely risky time. “[President Donald] Trump has literally been saying he wants to do this since January,” one person wrote, referencing rumors of reductions in force.

One of the most sobering comments asked a simple but serious question: “What happens if this gets worse? How long can you afford payments without a job? What if the wife loses her job? Are you OK selling the home for a huge loss?”

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The original poster responded that they weren’t worried about affording the mortgage thanks to their wife’s income and their own savings. But their real concern remained the income verification. “Not sure if there is any flexibility in that,” they wrote.

Some commenters argued there isn’t: “There is none! Even getting a new job could disrupt it.”

Others, like someone in a similar situation, expressed resignation: “I’ve just ensured my broker is aware of the details. Not much else we can do.”

In a time of deep political dysfunction and economic uncertainty, buying a house, normally a major life milestone, has turned into a source of fear and frustration for at least one federal worker. Whether this deal closes may come down to timing, luck, and the flexibility of one lender.

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This article A Federal Employee Faces A Once-In-A-Lifetime Ordeal—Closing On A House While Being Furloughed. ‘This Is Not The Time To Be Closing On A Home’ originally appeared on Benzinga.com