The Government May Be Shut Down — But Your Access to Home Equity Isn’t

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The government may be on pause, but your options for accessing home equity don’t have to be. As of October 1, 2025, a partial U.S. government shutdown has taken effect, leaving many federal offices operating with limited staff—including the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA).

So, what does this mean for FHA-backed Home Equity Conversion Mortgages (HECMs)? Fortunately, not all that much.

Current HECM Borrowers
If you already have a HECM loan, rest assured: your payments and credit line will continue as normal. Some items that require federal review may experience minor delays due to limited HUD staffing, but overall, your loan remains largely unaffected. HUD’s contingency plan ensures essential processes—such as claims filing and processing—continue to operate.

For Those Considering a HECM
While new HECM endorsements cannot be approved during the shutdown, that doesn’t mean you need to put your plans on hold. Planning ahead is key. Working with your lender, you can continue gathering and submitting the necessary information, preparing your application to confirm eligibility, and discussing timelines and next steps. By taking these actions now, you’ll be ready to move forward as soon as approvals resume—so you don’t lose valuable time.

An Immediate Alternative: Longbridge Platinum
While HECMs are the most common reverse mortgage, they’re not the only option. Non-FHA proprietary “jumbo” reverse mortgages—like Platinum by Longbridge—remain unaffected by the government shutdown.

In fact, Platinum offers reverse mortgage solutions that go beyond the limits of a standard HECM. Whether you’re looking to maximize your cash today, plan for future needs, or leave a legacy, there’s a Platinum option designed to help you reach your goals—with loan amounts up to $4 million¹ and greater flexibility than traditional products.

Like a HECM, Platinum offers key advantages, including:

No required monthly mortgage payments (as long as you continue to meet loan obligations such as keeping current with property taxes, homeowners insurance, and home maintenance)
Non-recourse protection, meaning you’ll never owe more than your home is worth when the loan is repaid and the home is sold.

Even better, Platinum is available to more homeowners—starting at age 55²—and offers expanded eligibility for condos and a wider range of home values.

Another Option to Access Home Equity: HELOC for Seniors®
In addition to our proprietary Platinum reverse mortgage suite, Longbridge proudly offers HELOC for Seniors®, the first-of-its-kind home equity line of credit designed specifically for retirees. This innovative product is not impacted by the government shutdown, allowing qualified homeowners to access their equity without delay. In fact, with a simple 100% online application, you could receive approval in as little as 10 minutes—and funds within as few as five business days.³

HELOC for Seniors® provides flexible access to your home’s equity when you need it most—whether that’s managing day-to-day expenses, covering unexpected costs, or funding larger goals. With fixed rates per draw⁴ and interest-only payments for the life of the loan⁵, it’s a smart, stable way to stay financially confident, even in the face of economic or government uncertainty.

Looking Ahead…
At Longbridge Financial, we remain committed to serving our clients and partners every step of the way—no matter what’s happening in Washington. Our experienced team of professionals is here to help you navigate your home equity options so you can find the solution that best fits your needs and move forward with confidence.

Contact the Longbridge team today to learn more about your options and discover how you can put your home’s equity to work for you.

¹ The state of MA has a maximum loan amount/lending limit of $2,000,000.
² Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply.
³ Approval may be granted in ten minutes but is ultimately subject to verification of income, employment, and property value, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing or require a waiting period prior to closing.
⁴ HELOC For Seniors® is an open-end product where a minimum of 80% and up to a maximum of 100% of the full loan amount (less the origination fee and costs) must be drawn at closing. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the 10-year draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
⁵ You must meet your loan obligations, and stay current with property taxes, insurance, and maintenance.

Longbridge Platinum Reverse Mortgage (“Platinum”) is Longbridge Financial LLC’s proprietary loan program and is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Platinum is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Platinum currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.

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The Government May Be Shut Down — But Your Access to Home Equity Isn’t

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