Over the years, I have helped many homebuyers to access homeownership, regardless of their immigration status. As an Accredited Buyer Representative dedicated to helping individuals and families achieve the American dream of homeownership, I've always believed in making this dream accessible to all. However, recent policy changes have significantly altered the landscape, affecting not only prospective homeowners but also our roles as real estate professionals.

FHA and USDA Revise Residency Requirements for Home Loan

The recent policy changes by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) have introduced new residency requirements for government-backed mortgage programs. These updates may significantly impact non-permanent residents seeking home financing.​

USDA Loan Program 

March 18, 2025, the USDA's Single-Family Housing Guaranteed Loan Program (SFHGLP) revised its eligibility criteria. Borrowers must now be U.S. citizens, permanent resident aliens, or possess specific eligible statuses. ​

FHA Loan Program 

As expected,  FHA loan followed. Beginning May 25, 2025, the Federal Housing Administration (FHA) will limit its insured mortgages to U.S. citizens and lawful permanent residents. This change affects individuals on temporary work visas, such as H1B or L1, and those with an Employment Authorization Document (EAD) and Social Security Number but without permanent resident status. ​

What does it mean for Homebuyers?

If you're a non-permanent resident planning to purchase a home using USDA or FHA loan programs, these policy changes may affect your financing options. It's essential to understand these updates and explore alternative pathways to homeownership.

Evaluate your eligibility- Determine if you meet new residence requirements for USDA and FHA loans. Confirm whether you are a U.S. citizen, lawful permanent resident, or hold another eligible status as specified by the respective loan program.

Gather Documentation -Collect necessary documents that verify your residency status, such as a Permanent Resident Card (Green Card) or other official documentation.

Explore alternative financing - Search other mortgage options available through private creditors who may have different eligibility criteria.

Consult professionals - get involved with mortgage brokers or financial consultants to navigate these changes and identify the best solutions to your situation.

Understanding and adapting to these political changes can be a challenge. If you or someone you know is affected and seeking guidance. My team is committed to providing personalized support to help you achieve your homeownership goals.​