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Government Shut Down Guideline Change ALERT

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Mortgage and Lending with Shamrock Home Loans NMLS 12938 Branch 2549509

The Federal employees are going with out pay check, wondering if they still have a job after this is resolved, well it just got harder for them to buy a home.  Freddie Mac and Fannie Mae just announce a NEW GUIDELINE for Federal Employees.

Starting with application dates of Monday, November 3 and later, Fannie Mae and Freddie Mac will begin requiring reserves for all transactions where borrowers are either employed by the federal government or their employment is directly impacted by the shutdown. The loan must have the greater of:

  • Two months of documented reserves, or

  • The amount of reserves required by DU/LPA, with overlays as required by the respective selling guides.

If the source of reserves is non-liquid (such as retirement funds), will consider them same as liquid if supported by documented terms of withdrawal.

So if you have a buyer who is a Federal Government employee, and they are looking to make an offer, please make sure they speak to their lender. 

If they need a lender, have them call me!

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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello John and hope the government get it open soon,  I have lots of friends working in the government that do not know if they will get back pay.

 

Oct 31, 2025 09:18 AM
Gerard Gilbers

The government workers normally get back pay, even some that did not work. The contractors do not get any compensation. I was a little surprised to see my military retirement check deposited yesterday! I haven't checked on my VA check although I will be more concerned if it goes into December. 

Oct 31, 2025 08:07 PM
GilbertRealtor BillSalvatore
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

good post with great information. Thanks for sharing it. Bill

Have a fantastic week and enjoy your upcoming weekend!

Bill Salvatore, Realtor- Arizona Elite Properties

Oct 31, 2025 10:29 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

This new rule will make it a little more difficult for government workers. I can understand why lending institutions would want to protect themselves although the length of the shutdowns and the delinquencies after they get their backpay should be minimal. 

Oct 31, 2025 08:11 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Good overview of how new guidelines might impact buyers. Thank you for sharing.

Nov 01, 2025 05:48 AM
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