Fernando
Elite Member
- Joined
- Nov 7, 2016
- Professional Status
- Certified Residential Appraiser
- State
- California
The number of new FHA mortgages granted to non-permanent residents has dropped to near-zero following the Trump administration’s recent executive orders targeting immigrants, according to new data.
In a March 26 letter, the Department of Housing and Urban Development announced that non-permanent residents in the United States, including H-1B visa holders, would no longer be eligible for mortgages insured by the Federal Housing Administration (FHA), effective May 25.
The move, the letter said, was in line with President Donald Trump’s “commitment to safeguarding economic opportunities for U.S. citizens and lawful permanent residents,” while also ensuring that “federal benefits, including access to FHA-insured mortgages, are reserved for individuals who hold lawful permanent resident status.”
The impact of these policy changes has already become evident in the U.S. housing market, “reshaping the housing market for non-permanent residents,” Alex Thomas of John Burns Research & Consulting (JBREC) posted on X.
In July and August, the share of non-permanent residents securing the government-backed loans issued by the FHA was near zero percent. That was the lowest level in the timeline provided by JBREC, which dates back to February 2018.
“New FHA mortgages to NPRs have dropped to near-zero following a rule change in May,” Alex Thomas, one of the experts behind JBREC’s new report, wrote on X. “NPRs made up ~4 percent of FHA loan volume nationally in 2024; more in some markets, especially in Florida.”
In a March 26 letter, the Department of Housing and Urban Development announced that non-permanent residents in the United States, including H-1B visa holders, would no longer be eligible for mortgages insured by the Federal Housing Administration (FHA), effective May 25.
The move, the letter said, was in line with President Donald Trump’s “commitment to safeguarding economic opportunities for U.S. citizens and lawful permanent residents,” while also ensuring that “federal benefits, including access to FHA-insured mortgages, are reserved for individuals who hold lawful permanent resident status.”
The impact of these policy changes has already become evident in the U.S. housing market, “reshaping the housing market for non-permanent residents,” Alex Thomas of John Burns Research & Consulting (JBREC) posted on X.
What Do The Latest Numbers Show?
A new report by JBREC, authored by Thomas and colleagues Eric Finnigan and Zack Ray, found that non-permanent residents, also referred to as NPRs, made up less than 1 percent of FHA loan volume nationally in June, down from nearly 5.5 percent a month earlier and over 6 percent in April.In July and August, the share of non-permanent residents securing the government-backed loans issued by the FHA was near zero percent. That was the lowest level in the timeline provided by JBREC, which dates back to February 2018.
“New FHA mortgages to NPRs have dropped to near-zero following a rule change in May,” Alex Thomas, one of the experts behind JBREC’s new report, wrote on X. “NPRs made up ~4 percent of FHA loan volume nationally in 2024; more in some markets, especially in Florida.”