The Federal Housing Administration today announced that non-permanent residents are no longer allowed to access FHA-insured mortgages, part of a broader effort by the Trump administration to tighten immigration policies.
An example of a non-permanent resident includes an individual with a work visa. Non-permanent residents were previously eligible for FHA-insured mortgages provided the property will be the borrower’s principal residence, the person has a valid Social Security number and is eligible to work in the U.S., according to the agency’s website.
In a mortgagee letter and a Title I letter, the FHA removed the nonpermanent resident sections in its residency requirements for mortgages. The letters clarify that going forward, mortgagees must determine residency status of the borrower based on information provided on the mortgage application and other applicable documentation.
“The administration has reaffirmed its commitment to safeguarding economic opportunities for U.S. citizens and lawful permanent residents while ensuring that federal benefits, including access to FHA-insured loans, are reserved for individuals who hold lawful permanent resident status,” the agency said. “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.”
