What the Government Shutdown Means for Building a Home in Central Washington
With the federal government currently shut down, many homeowners and future homebuilders are wondering what it means for their plans. The good news? For most residential construction in Central Washington, the impact is limited, but not invisible.
At Blu Water Homes, we’re still building, crews are still working, and local permitting offices remain open. But here’s what you should know if you're planning or in the middle of building a home during the shutdown.
Local Permits and Construction
Most of what it takes to build a home here in Chelan and surrounding counties happens at the local level. That means city and county permitting offices are open, inspections are still happening, and our build schedules have not stopped.
If your project does not involve federal land, flood zones, or environmental approvals through federal agencies then you are unlikely to see big permitting delays.
Financing
If you're buying a home or financing construction through a federal loan program, you could see some delays. Government agencies are now operating with limited staff.
FHA loans, often used by first-time buyers, are still being processed but with slower response times due to reduced staffing.
VA loans are still moving forward, but final approvals and appraisals may take longer.
USDA loans, which help buyers in rural areas, are paused entirely during the shutdown. No new approvals or closings can happen until funding resumes.
Flood insurance from the National Flood Insurance Program (NFIP) cannot be issued right now. If your property is in a flood zone, this could delay your loan closing unless private coverage is available.
If you are using one of these programs, it is best to talk with your lender early and prepare for a longer timeline. Conventional loans from banks or credit unions are mostly unaffected and continue as normal.
Materials and Labor
Construction materials are still moving. We are not seeing supply chain issues tied directly to the shutdown, and we are staying in close touch with vendors to keep timelines intact.
As for labor, most of our crews are long-time partners. The shutdown does pause certain federal hiring systems, but this does not impact our day-to-day operations.
One factor we are keeping an eye on is data. During a shutdown, federal agencies pause key economic reports, including housing starts, employment numbers, and commodity pricing. While this does not affect construction sites directly, it limits the visibility builders and suppliers have into market trends, which can create uncertainty across the industry.
What Homeowners Should Expect
Even if the impact is small right now for private residential builders, it is still real. The longer the shutdown continues, the more likely we are to see broader effects across the industry.
If you are building with us, here is what we recommend:
Check with your lender if you are using any government-backed loan
Build in a little extra time for final paperwork, just in case
Ask us if your land requires any federal permits or insurance. We will help you find out!
We are experienced in navigating challenges, and we are actively managing timelines, materials, and communication to keep projects moving. If you have questions about how the shutdown could affect your build, feel free to reach out. Our team is here to support you and keep your project on track.
