Government Shutdown 2025: What It Means for NJ Homebuyers and Homeowners

By Scott Selleck | The Selleck Group | Keller Williams City Views Realty
Serving Bergen & Hudson County Real Estate

🎥 Watch the Video

Click play below to watch Scott Selleck break down how the federal government shutdown is impacting homebuyers, homeowners, and sellers right here in Northern New Jersey—and what you can do to protect your real estate plans.

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🏡 The Real Impact on New Jersey Real Estate

We’re now three weeks into a federal government shutdown, and the ripple effects are hitting the housing market hard—especially across Bergen County and Hudson County.

In New Jersey alone, over 22,000 federal employees are either furloughed or working without pay. Many are already missing mortgage payments, creating real financial pressure for families in Fort Lee, Leonia, Edgewater, Tenafly, and Englewood.

But it’s not just federal workers feeling the pain.

• Homebuyers are stuck in limbo.
  Seventeen percent of Americans are delaying home purchases, and seven percent have abandoned plans entirely.

• USDA loans are frozen, and FHA/VA loans are delayed with limited staff.

• Flood insurance has lapsed, posing a significant issue for buyers near the Hudson River and Edgewater’s waterfront communities.

Every day this shutdown continues, thousands of closings are stalled nationwide, totaling more than $1.6 billion in real estate transactions daily.

💔 Homeowners and Buyers Facing Tough Choices

For homeowners, especially those in flood zones, an expired flood insurance policy could mean losing coverage entirely.

Federal employees are now forced to make impossible choices—mortgage or groceries—while the market holds its breath.

As one economist said, “We’ve weathered tariffs, job losses, and volatility... now a shutdown. What’s next?”

The uncertainty is shaking consumer confidence—but there are ways to take back control.

💡 Real Solutions to Keep Your Plans on Track

For Federal Employees

Contact your mortgage servicer immediately.
Most major lenders are treating this shutdown like a natural disaster—offering forbearance, fee waivers, and payment extensions.
The key is to act before you miss a payment.

For Homebuyers

If you’re using FHA, VA, or USDA financing, consider switching to a conventional loan.

• Conventional loans (Fannie Mae/Freddie Mac) are operating normally.

• You’ll need about 3–5% down, but you’ll avoid shutdown-related delays.

New Jersey buyers can also tap into the NJ HMFA Down Payment Assistance Program, offering up to $15,000–$22,000 in forgivable assistance.

For Flood Insurance

Don’t wait for the federal program to restart—private flood insurance is fully available and accepted by all major lenders.
It now represents over 27% of the flood insurance market, and platforms like FloodPrice.com can provide quick, competitive quotes.

If you’re unsure whether your property is in a flood zone, I can help you identify risk areas and connect you with trusted insurance experts.

💼 If You’re Selling Your Home

• Be flexible with timing; build in 30–60 days of cushion.

• Price strategically. Buyer confidence is lower, so precision matters.

• Focus on conventional buyers to minimize risk during the shutdown.

📊 Why This Matters Locally

The Bergen and Hudson County markets are uniquely exposed.
Waterfront homes require flood insurance. Federal employees live throughout our neighborhoods.
And first-time buyers—often FHA or VA dependent—are suddenly sidelined.

Still, there’s good news:

• Mortgage rates have eased into the mid-6% range.

• Inventory is up 15–20%.

• And the fundamentals of our Northern NJ market remain strong.

🧭 What To Do Now

✅ Federal employees: Contact your mortgage servicer immediately.
✅ Homebuyers: Explore conventional loan options.
✅ Homeowners: Review flood coverage and renew through private insurers.
✅ Sellers: Stay flexible and work with experienced professionals.

The bottom line — the shutdown doesn’t have to derail your real estate goals.
With the proper guidance, you can move forward confidently.

💬 Let’s Talk

I’ve navigated challenging markets for over 32 years—from housing booms to financial crises—and I’m here to help you through this one.

📞 Call or text: 201-970-3960
📧 Email: [email protected]
🌐 Visit: www.SelleckSellsNJ.com

Scott Selleck | The Selleck Group | Keller Williams City Views Realty
📍 2200 Fletcher Avenue, Suite 502, Fort Lee, NJ 07024

We’ll get through this together — and I’ll make sure your real estate goals stay on track.