The current government shutdown has left many Americans with questions about how federal services will be affected, especially those who rely on government-backed programs for their finances and housing. Among those who have good ready to worry are homeowners with a Home Equity Conversion Mortgage (HECM), better known as a federally insured reverse mortgage. These borrowers depend on their HECM loans to access the equity in their homes to pay bills, supplement retirement income, or cover emergencies.

Will the 2025 government shutdown stop current HECM (reverse mortgage) borrowers from accessing or withdrawing funds from their home equity?

No, the 2025 government shutdown does not stop current HECM (FHA-insured reverse mortgage) borrowers from withdrawing their home equity, receiving monthly payments, or using their line-of-credit. Some special servicing requests may be delayed.

So, how does the 2025 government shutdown impact a HECM borrower’s ability to access home equity? Here is what to expect, what stays the same, and what changes during this unusual period.

What Is Happening Right Now

As federal agencies shutter and many government employees face furloughs, agencies like the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) are running with essential staff only. This limited staffing means that only certain core functions will continue for the duration of the government shutdown. Since the FHA insures all HECM reverse mortgages, the government’s ability to manage and oversee the program depends on rules set out in HUD’s “contingency plan.” This plan determines which services keep operating and which will be delayed or stopped until Congress passes a new funding bill.

Core Protections for Current HECM Borrowers during Government Shutdown

Borrowers who already have an active HECM loan should take comfort knowing that the most important fact is this: the government shutdown will not prevent access to your home’s equity if you already have an FHA-insured reverse mortgage. Here’s the bottom line:

• Scheduled monthly payments to borrowers will continue as expected.
• Requests to take draws from a line of credit remain available.
• Payoffs, lien releases, and other routine requests can still be made, although they might take more time to process.
• Existing online platforms, like the HUD counseling locator and FHA Resource Center, will keep running, even if response times are slower.

In other words, if someone depends on their reverse mortgage for monthly cash flow or to withdraw funds to pay bills, nothing will change during the government shutdown. The main systems involved in distributing these funds continue to operate.

The Bottom Line: You Still Have Access to Equity during the Government Shutdown

Access to home equity for HECM borrowers is protected because HUD directly manages the distribution of funds. According to HUD, during this government shutdown, HECM borrowers will continue to receive payments funded through the program. The FHA’s contingency plan specifically guarantees that funding is available for scheduled payments and that the agency will process them.

So, if someone has regularly scheduled disbursements as part of their HECM loan (such as monthly installments or line-of-credit withdrawals), those payments will continue. Lenders and loan servicers are likely to keep operating under these conditions, although processing of new HECM loans may require more time than normal.

Possible Delays for Special Requests during Government Shutdown

While regular activities like monthly payments and standard draws continue, certain requests may take longer. This is not because the money is unavailable, but because human staff at HUD and FHA are limited.

For example:

• Any manual review or special case, such as correcting errors, reviewing hardship requests, or handling payoff disputes, might be delayed.
• Lien releases, subordinations, or payoff processing for unique and complex cases may face slower turnaround times.
• Escalations, appeals, or interventions that need government employee review might be set aside until staffing returns to normal.

These slowdowns do not block normal monthly payments, but they may frustrate borrowers who are in unusual or stressful situations.

What Does Not Change for HECM Borrowers during Government Shutdown

Some borrowers fear that a government shutdown could suddenly freeze the money available through their reverse mortgage. That has not happened, and it is not expected to occur during this government shutdown:

• The money for monthly payments, line of credit draws, and lump sum withdrawals is already obligated to the borrower. Lenders have the legal responsibility to make these funds available.
• FHA’s systems supporting these payments remain active even with fewer staff. Loan servicing and claims processing are operated with a skeleton crew, but they are still happening.
• Most important, there is no authority or current plan for HUD, FHA, or lenders to cut off HECM borrowers from access to their home equity solely because of this shutdown.

The exception is that no new HECM loans will be endorsed or insured until the government is funded and fully reopened. This does not affect those with already existing, insured HECM loans.

Key Actions Borrowers Should Take

Although access to equity is safe, borrowers still need to stay aware of their financial obligations and communicate quickly with their servicer if any issues arise.

• If receiving regular draws or payments, expect them to continue. Contact the servicer only if a payment does not arrive on time.
• If needing to take out a larger draw for an emergency, the servicer should still be able to process this request, although it could take longer for manual reviews.
• In any urgent situation (e.g. if someone falls behind on insurance or property tax payments), borrowers should call the servicer immediately. Loss mitigation departments may be short-staffed or slower than usual, but open communication remains important.
• Borrowers who are heirs managing a HECM after a loved one’s passing should expect some documents or payoff information to move more slowly. However, servicers must still follow the law and available guidance.

Will This Change If the Government Shutdown Lasts for Months?

The longer a government shutdown lasts, the more pressure it puts on all agencies, including HUD. For now, there is enough funding for the FHA to keep servicing existing HECM loans and letting borrowers access equity. If the shutdown were to last for many months (a situation that is extraordinarily rare in history) Congress might need to consider new actions, but no such changes are planned or expected at this time.

What About Borrowers Waiting to Close New HECM Loans?

Borrowers who have applied for a new HECM, but have not reached the endorsement (final approval/insurance) stage, will likely see those applications paused during the government shutdown. The FHA will not endorse new HECM loans until funding returns. This does not affect current borrowers using their existing loans. It only matters for new applicants who have not yet finalized the federal insurance step.

Frequently Asked Questions about the Government Shutdown and Reverse Mortgages

Will my lender stop sending me monthly HECM payments because of the shutdown?

• No. If the reverse mortgage was finalized and insured before the government shutdown, monthly payments should continue as scheduled.

Can I still take out money from my HECM line of credit during the government shutdown?

• Yes. Borrowers can access available funds as normal. Any request for extra help or special processing may be delayed but not blocked.

Will I lose access to my home’s equity if the government shutdown continues for several weeks or longer?

• No. Unless new guidance is issued by Congress or HUD (which is not the case now), HECM borrowers keep access to their equity.

What if I have a unique problem or need special approval on my HECM?

• Routine servicing and draws will happen. Special cases needing government review may move slower due to fewer available staff. Stay in contact with your loan servicer for updates.

Find additional FAQs here.

Final Thoughts

This year’s government shutdown is causing valid concern for borrowers across the housing market. However, for those who already have a HECM reverse mortgage, the structure and rules of the program mean that access to home equity will continue as planned. Monthly payments, line of credit advancements, and payoffs from existing HECM loans are protected even during the shutdown.