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 allow 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.

Mortgage Home Loans for Non-Citizen Borrowers

Editor’s note: This post has been updated to reflect Fannie Mae’s current non-citizen borrower guidelines and to add information on ITIN and non-QM loan programs.

You don’t have to be a U.S. citizen to buy a home in Washington State. I work with non-citizen borrowers regularly, and there’s often confusion — even among loan officers — about who qualifies and what’s required. Here’s a clear breakdown of how it works, including options for borrowers who use an ITIN instead of a Social Security number. [Read more…]