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2.0

HUD Eliminates Title I Loan Eligibility for Non-Permanent Residents

  1. Original Date Announced

    March 26, 2025

    Department of Housing and Urban Development (HUD) General Deputy Assistant Secretary for Housing Jeffrey Little issued letters on behalf of the Federal Housing Administration (FHA) "eliminating eligibility for non-permanent resident Borrowers" under Title I (home improvement loans) and Title II (single family mortgage loans) of the National Housing Act. The letters state that HUD will remove sections on non-permanent residents' qualifications for FHA-backed loans from the Family Housing Policy Handbook § 4000.1. Citizens of Micronesia, Marshall Islands, and Palau may also be eligible for FHA insured financing by providing evidence of such citizenship.

    The new requirements are effective immediately and must be implemented for FHA case numbers assigned on or after May 25, 2025.

    Trump 2.0 [ID #2047]

    2025.03.26 HUD Title I Letter 490 - Revisions to Title II Residency Requirements 2025.03.26 HUD Mortagee Letter 2025-09 - Revisions to Title II Residency Requirements
  2. Effective Date

    May 25, 2025

Current Status

None

Original Trump Policy Status

Status: Final/Actual
Subject Matter:
Agencies Affected: Other

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