Blog Details

The U.S. Department of Housing and Urban Development (HUD) has issued a major change affecting homebuyers across the nation: Effective May 25, 2025, non-permanent residents are no longer eligible for FHA-insured mortgages. This rule represents a significant departure from past FHA guidelines and will directly impact thousands of prospective buyers—especially in immigrant communities.

What Was the Rule Before?

Before May 25, 2025, non-permanent residents could apply for and obtain an FHA loan as long as they met the following conditions:

• They had a valid Social Security Number (SSN).
• They were authorized to work in the U.S., typically via a work visa or Employment Authorization Document (EAD).

What Has Changed?

Starting May 25, 2025, FHA will no longer insure loans for non-permanent residents—even if they have a work visa, EAD, or valid SSN. This change was announced as part of HUD’s revised eligibility guidance and applies to all new FHA loan applications moving forward.

Who Is Still Eligible for FHA Loans?

Under the new policy, the following groups remain eligible for FHA-insured financing:

• U.S. citizens
• Lawful permanent residents (Green Card holders): Must provide proof of permanent residency through documentation from U.S. Citizenship and Immigration Services (USCIS).
• COFA citizens: Citizens of the Federated States of Micronesia, Republic of the Marshall Islands, or Republic of Palau under the Compact of Free Association.

Important Clarification on Social Security Numbers

A Social Security card alone is no longer enough. Lenders will now require proof of lawful permanent residency, such as a Green Card, to confirm FHA eligibility. This change closes the door for many borrowers who previously qualified under work-based documentation.

If you're unsure about your eligibility or want to explore alternative loan programs, contact the Unbeatable Loans team today. Our experts can walk you through your options—even if FHA is no longer one of them.