HUD Changes Citizenship Requirements for FHA Mortgages

FHA issued an update to their guidelines (ML 2025-09) revising residency requirements for FHA mortgages. The new guidelines only allows U.S. citizens and lawful permanent residents and removes non-permanent residents from being eligible.

From Mortgage Letter 2025-09:

“Currently, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country. This uncertainty poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”

This is an evolving situation. I expect other government backed loans to follow suit. Stay tuned.