The U.S. Department of Housing and Urban Development (HUD) has decided to revise its residency requirements for FHA-insured mortgages. Effective May 25, 2025, the department will exclude "non-permanent residents," a category that previously allowed some illegal immigrants to access these government-backed loans.
HUD Secretary Scott Turner clarified that this change is part of the administration's broader efforts to prioritize American citizens' access to federal housing programs. This decision aligns with former President Donald Trump's executive orders related to immigration.
FHA loans provide government-insured mortgages intended to assist lower-income individuals in purchasing homes. Although U.S. law already prevents illegal immigrants from obtaining FHA-backed home loans, the announcement affirms HUD's commitment to enforcing these restrictions more strictly in the future.
The policy shift also affects Deferred Action for Childhood Arrivals (DACA) recipients, individuals pending asylum, or with pending refugee status. The alteration reverses a prior policy that permitted DACA recipients to apply for FHA loans if they had a valid Social Security Number and work eligibility.
Earlier this week, HUD, along with the Department of Homeland Security, released a Memorandum of Understanding to coordinate efforts against taxpayer-funded public housing for illegal immigrants.
Secretary Turner commented, "There will be no more illegal aliens getting HUD-backed home loans," pointing out that the Biden administration's policies allowed illegal immigrants undeserved access to taxpayer resources. He emphasized the importance of protecting law-abiding citizens' rights to homeownership, aligning with executive orders to cease taxpayer subsidization of what he described as "open borders."
The new guidelines will be incorporated into the upcoming version of HUD’s Single Family Housing Policy Handbook.
