On March 26, 2025, the U.S. Department of Housing and Urban Development (HUD) announced significant changes to the eligibility criteria for Federal Housing Administration (FHA)-insured loans.

Effective May 25, 2025, non-permanent residents, including recipients of the Deferred Action for Childhood Arrivals (DACA) program, will no longer be eligible for these government-backed mortgages. This means for loans with FHA case numbers assigned on or after May 25, 2025 only U.S. citizens and permanent resident aliens will be eligible for financing.

While FHA-insured loans are no longer accessible to non-permanent residents, alternative mortgage options may be available. Some financial institutions offer loans based on Individual Taxpayer Identification Numbers (ITINs) as a substitute for Social Security Numbers. However, these alternatives may come with different terms and potentially higher costs. At this time, there is no change to non-permanent resident requirements for conventional products.

If this change affects you personally or a client, contact me or your trusted mortgage lender to explore your options.