Furloughed in the government shutdown? Here's help for those facing late mortgage and rental payments.

Even before the federal shutdown displaced 750,000 employees, a weakening economy this year has jeopardized the ability of a growing number of Americans to make on-time mortgage and rental payments.

Delinquencies on mortgage payments rose 10 basis points from the first quarter of 2024 to the first quarter of 2025, according to the Mortgage Bankers Association. And the number of renters making late payments also increased, according to commercial real estate firm Chandan Economics.

That's largely because of inflation and the weakening job market. The consumer price index climbed 2.9% from August 2024 to August 2025, according to the U.S. Bureau of Labor Statistics. Shelter alone rose 3.6% during that same period.

At the same time, the number of jobless Americans rose from 7.1 million in August 2024 to 7.4 million in August 2025, according to the BLS.

Let Homes.com walk you through strategies to facilitate conversations with your lender and landlord and access housing assistance programs.

Legally, the eviction process doesn't begin until you receive an official late notice from your landlord. From there, it can take up to five days before you receive an official eviction notice, according to advice from the Legal Services of Northern Virginia. Before that happens, you can get in front of the problem to avoid stress.

Reaching out well in advance of your rent’s due date is the first and most important step. Contact your landlord as soon as you anticipate being late with a payment. Communication is not only courteous but also punctual. Reaching out too close to your rent’s due date may not sit well with your landlord.

When speaking to your landlord, be transparent about why you will miss the upcoming payment and provide documented proof, if necessary. For example, if you’ve been furloughed, you may give your landlord a copy of your notice. That legitimatizes your claim and establishes trust between you and your landlord.

Even with proper notice and proof, your landlord may still attach late fees or other penalties to your next monthly payment. If so, make sure you understand what they are and how much you will need to pay. Some landlords choose to forgive your late fees at some point.

All communication with your landlord should be in writing, LSNV said. This establishes a clear track record of communication in case the issue reaches the court system.

Homeowners who can't make their monthly payments because of employment or income changes should contact their servicer immediately, according to Jessica Vance, a San Diego-based investor and mortgage broker with Anchor Funding. Your mortgage servicer is the entity that manages your monthly loan payments. Some lenders service their own loans, while others choose to outsource to other entities. In simple terms, the entity that you communicate with to pay your mortgage is the servicer.

Inform your servicer of your situation and bring proof, if necessary. For example, you may need to send a copy of your furlough notice.

From there, take detailed notes of every conversation with your servicer. You'll find that many servicers offer short-term options for job loss situations or similar scenarios.

"The options could be payment deferral or some type of repayment plan. If the loan is FHA, VA or USDA, my understanding is that these agencies issue specific guidance to servicers during government shutdowns," Vance said. "These agencies generally encourage servicers to waive late fees, avoid negative credit reporting and not to start foreclosure processing."

For info on resources related to FHA, VA or USDA loans, contact the VA Loan Center, the FHA Resource Center or USDA Rural Development Offices.

"Some agencies may also have zero-interest emergency loans," Vance shared. "There may be other types of bridge financing that could be available for military, federal law enforcement or civilian departments." Non-government homeowners may also call their credit unions or banks to inquire about similar offerings.

Mortgage lenders, on the other hand, typically require more than a conversation. Before you can apply for forbearance or other loss mitigation options, you must be at least three to four months behind on your mortgage payments. After this period, you should call your servicer immediately and explain your situation. You can also contact a local U.S. Department of Housing and Urban Development counselor through the organization’s website. These professionals are trained to advise you and facilitate connections with third parties that can help.

However, the office is operating at limited capacity because of the shutdown, so responses may be delayed.

From there, you’d need to apply for forbearance or other loss mitigation options via a lender-provided application. To complete the application, compile your basic information, loan number, property information and your income. Income types include gross, self-employed, unemployed and Social Security, if you have it.

After applying, you may need to provide proof of financial hardship to your lender. That may consist of an unemployment compensation claim or a termination letter. According to Fannie Mae, applicants aren’t required to submit proof of financial hardship in most cases. But it's still good practice to have the proper documentation.

Eventually, it’ll be time to choose the best mortgage forbearance option for you. You can pause payments and pay after the forbearance period — around three to six months — is over. Pausing your payments and repaying at the end of your mortgage term is also an option. Last, if pausing payments isn’t an option or consideration, you could simply reduce them and repay your loan over an extended term.

When asked how the government shutdown would affect rental assistance programs, David Gonzalez Rice, senior vice president of public policy for the National Low Income Housing Coalition, said tenants in Section 8 programs wouldn’t be impacted until November, at least. “Those funds were obligated before the shutdown and public housing agencies still have access to them. If the shutdown continues beyond November, public housing agencies may draw on operating reserve funds to keep making rent payments until the federal government reopens,” Rice said. Beyond November, housing assistance programs would likely rely on reserve operating funds to cover rent payments. But those funds may be limited, depending on how much an agency has saved.

For those concerned about how the shutdown will impact their rental payment assistance, reaching out to your public housing agency is the best approach to determining the status of your payments.

Rice also explained how renters or homeowners in need can apply for aid during the shutdown. “Housing Choice Vouchers are administered by local public housing agencies. Other forms of federal housing assistance go through states, counties, cities and non-profits that each maintain their own application processes,” he said. While these programs will remain open, obtaining information about them may be difficult due to the shutdown. In terms of applying to these programs, specific documentation will vary, depending on the governing body.

Renters who still owe payments for the month should prioritize covering them. If you can’t cover payments, it’s important to contact your landlord or mortgage lender immediately, according to the NHC.

Government employees face more strenuous circumstances during the government shutdown. Beyond traditional assistance programs, some credit unions and financial institutions are offering paycheck assistance programs with a 0% annual percentage rate, according to the NHC. The Navy Federal Credit Union, for example, is offering eligible service members loan amounts based on their monthly paycheck amounts. Other institutions with similar programs include the Congressional Federal Credit Union or the PenFed Credit Union.

Rice offered advice to renters facing immediate eviction. “A tenant facing eviction due to the federal government shutdown should seek legal counsel. State and local governments vary in legal protections and emergency financial assistance offered to tenants,” he said. “NLIHC advocates for legislation that would strengthen protections and resources available to renters across the country.”