HUD Bars FHA Mortgages for Illegal Immigrants, Non-Permanent Residents

The Department of Housing and Urban Development (HUD) has announced a policy change that bars illegal migrants and non-permanent residents from receiving Federal Housing Administration (FHA) mortgages. HUD Secretary Scott Turner stated that this move aligns with the Trump administration's priorities to ensure taxpayer dollars are not used to support illegal immigration. The new guidelines mandate that lenders must confirm the residency status of borrowers, as non-permanent residents may struggle to meet long-term financial obligations due to their uncertain immigration status. Previously, under the Biden administration, non-permanent residents enrolled in DACA were eligible for FHA loans, but this is no longer the case. The revision applies to all FHA programs, effectively removing the eligibility of non-permanent residents altogether. HUD's decision reflects a broader initiative to prioritize American citizens and lawful permanent residents in access to federal housing benefits.