Editor’s note: This post was originally published in March 2025 when FHA first announced this policy change. It’s been updated to reflect that the rule is now fully in effect and has been for over a year, with current eligibility and documentation details.
In March 2025, FHA issued Mortgagee Letter 2025-09, revising who can qualify for an FHA-insured mortgage based on residency status. The change is no longer new or pending — it took effect for case numbers assigned on or after May 25, 2025, and it’s the rule lenders are working under today. If you’re a non-permanent resident, or you’re a real estate agent working with borrowers on visas, here’s what you need to know.
What changed
Before this update, FHA allowed certain non-permanent residents — typically borrowers with valid work authorization, such as those on an approved visa — to qualify for FHA financing. Mortgagee Letter 2025-09 removed that eligibility entirely. FHA explained the reasoning this way:
“Non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country.”
The change applies across FHA’s core programs: Title II Single-Family forward mortgages, Home Equity Conversion Mortgages (reverse mortgages), and Title I Property Improvement and Manufactured Home loans. It touches purchases, refinances, and even non-credit qualifying streamline refinances — so an existing FHA borrower who’s a non-permanent resident may not be able to streamline-refinance their current loan under these guidelines.
Who’s still eligible
As of today, FHA financing is limited to:
- U.S. citizens
- Lawful permanent residents (green card holders)
- Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau, under the Compact of Free Association
Non-permanent residents — including those with valid work visas — no longer qualify for new FHA case numbers, regardless of how long they’ve lived and worked in the U.S.
Documentation lenders will ask for
If you’re a green card holder, expect your lender to require:
- Documentation from U.S. Citizenship and Immigration Services (USCIS) confirming lawful permanent resident status
- Your permanent resident status clearly indicated on the loan application
A Social Security card alone won’t satisfy this requirement — lenders need documentation that specifically verifies immigration status. If you’re a citizen of Micronesia, the Marshall Islands, or Palau, you’ll need to provide proof of citizenship, but otherwise you’re treated the same as a U.S. citizen for FHA purposes.
What this means for Washington borrowers
This one matters more here than in a lot of the country. Washington — and the greater Seattle area in particular — has a large population of homeowners and prospective buyers on employment-based visas, many working in tech, healthcare, and other visa-sponsored fields. If that describes you or your client, FHA is very likely off the table now unless you already have permanent resident status.
That doesn’t mean financing is out of reach. ITIN loans are one option worth exploring for non-permanent residents who don’t qualify for FHA under these rules — they’re a specialty program designed specifically for borrowers who may not have a Social Security number but can document income and creditworthiness another way. Conventional financing may also still be an option depending on your situation. It’s worth having that conversation with your lender early — before you’re under contract.
Read: FHA Mortgage Guide for Washington State
FAQ: FHA citizenship requirements
Can a non-permanent resident still get an FHA loan?
No. As of May 25, 2025, FHA no longer allows non-permanent residents — including those with valid work visas — to qualify for FHA-insured financing, regardless of how long they’ve lived or worked in the U.S.
Are green card holders still eligible for FHA loans?
Yes. Lawful permanent residents remain eligible, but lenders will require USCIS documentation confirming that status — a Social Security card alone isn’t sufficient.
Does this affect FHA streamline refinances?
Yes. The rule applies to non-credit qualifying streamline refinances too, so an existing FHA borrower who is a non-permanent resident may not be able to refinance their current FHA loan under these guidelines.
What if I’m a non-permanent resident and want to buy a home in Washington?
FHA financing is very likely off the table, but conventional loan options may still work depending on your situation. It’s worth talking with your lender early to understand what you qualify for before writing an offer.
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Last reviewed: July 2026
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