Story perspectives

FHA Mortgage Access Cut for Non-Permanent Residents

10/18/2025

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Summary

Story summary

The U.S. government will end Federal Housing Administration (FHA) mortgage eligibility for non-permanent residents, including H-1B visa holders, starting May 25, 2025.
The Department of Housing and Urban Development (HUD) announced this policy to limit federal benefits to U.S. citizens and lawful permanent residents.
Non-permanent residents' access to FHA loans has decreased dramatically, falling from over 6% of FHA loan volume to nearly zero.
Critics contend that non-permanent residents were not major contributors to housing market inflation, as they comprised a small percentage of FHA borrowers.
This policy change may hinder long-term settlement and homeownership for non-permanent residents in the U.S.

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Story summary

The U.S. government will end Federal Housing Administration (FHA) mortgage eligibility for non-permanent residents, including H-1B visa holders, starting May 25, 2025.
The Department of Housing and Urban Development (HUD) announced this policy to limit federal benefits to U.S. citizens and lawful permanent residents.
Non-permanent residents' access to FHA loans has decreased dramatically, falling from over 6% of FHA loan volume to nearly zero.
Critics contend that non-permanent residents were not major contributors to housing market inflation, as they comprised a small percentage of FHA borrowers.
This policy change may hinder long-term settlement and homeownership for non-permanent residents in the U.S.