A New FHA Policy That Could Impact Your Homebuying Journey
If you’re planning to use an FHA loan to purchase a home, a recent policy update may affect your eligibility. Beginning May 25, 2025, non-permanent residents will no longer qualify for FHA-insured mortgages.
This change is designed to protect the integrity of FHA programs and aligns with updated federal housing policy. But what does this mean for you?
What’s Changing?
FHA loans have long been a popular option for first-time homebuyers thanks to their low down payment requirements and flexible credit criteria. However, under the new policy:
Only lawful permanent residents (green card holders) will be eligible for FHA loans.
Non-permanent residents—even with legal immigration status—will no longer qualify.
The change applies to FHA Title I and Title II programs, including:
FHA Purchase Loans (203b)
FHA Renovation Loans (203k)
FHA Reverse Mortgages (HECM)
Property Improvement Loans
Manufactured Housing Loans
Why the Change?
This policy aims to:
Reduce risk to the Mutual Mortgage Insurance (MMI) Fund
Ensure FHA support is prioritized for long-term U.S. residents
Minimize default risks linked to immigration-related disruptions
In short, FHA wants to protect the program for homeowners who are most likely to remain in the U.S. long-term.
What If You’re No Longer Eligible?
If this change affects you—or someone you know—it’s important to understand that you still have options.
At V.I.P. Mortgage, we offer a full suite of home financing products that may be better suited to your situation. Our team of experienced loan officers can help you explore alternatives such as:
We’ll help match you with the right solution based on your residency status, financial goals, and future plans.
Let’s Explore Your Home Loan Options
Whether you’re a first-time buyer, an investor, or just unsure about your loan eligibility, we’re here to help. Our licensed mortgage professionals offer one-on-one guidance to walk you through every option available.
Call us at 702-793-2882 or click below to get pre-qualified in minutes.
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