FHA Axes Loans For “Non-Permanent Residents”

Non-permanent residents will no longer be eligible for Federal Housing Administration mortgages.

Officials at the Department of Housing and Urban Development say this change “ensures illegal aliens and non-permanent residents in the U.S. cannot access FHA-insured financing and refocuses the use of taxpayers’ resources and federal housing programs to benefit U.S. citizens.”

To make this happen, officials at FHA revised residency requirements and removed access for illegal aliens by eliminating in its entirety the “non-permanent residents” category from the Title I and Title II programs, according to a press release. 

The revised residency requirements will take effect on May 25.

“Today, HUD terminated Biden’s taxpayer-backed FHA mortgages for illegal aliens,” HUD Secretary Scott Turner wrote on X. “American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”

“HUD-backed mortgages should benefit Americans who play by the rules and work hard, not those who enter our country illegally. Today, HUD acted to protect the American Dream of homeownership,” Turner added.

A letter was issued explaining the changes, which are meant to keep FHA policy aligned with the Trump administration’s crackdown on immigration.

“Currently, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country. This uncertainty poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment,” the letter reads.

“This update ensures that FHA’s mortgage insurance programs are administered in accordance with Administration priorities while fulfilling its mission of providing access to homeownership.”

The letter also notes that no clear data is available about how many non-residents have taken out FHA mortgages.

Colin Robertson of The Truth About Mortgage guesses there wouldn’t be many examples because of how difficult it is to get a loan without plenty of financial documentation.

“[I]t’s not easy to get approved for a mortgage these days unless you have a solid employment history, robust credit history, and steady income. Someone who isn’t lawfully in the United States likely doesn’t fit that description,” he wrote.

Earlier this week, Turner and Department of Homeland Security Secretary Kristi Noem announced a joint mission to prevent “illegal aliens” from benefiting from housing programs.