The Federal Housing Administration (FHA) has critical lending programs for homebuyers, particularly first-timers, but will have to stop endorsing new mortgages if Congress cannot agree on a budget deal with the White House by midnight Friday and the federal government is forced to shutdown.

"FHA cannot offer endorsements for any new loans in the Single Family program and cannot make commitments in the Multifamily in the event of a shutdown," according to a memo drafted by a housing trade group.

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