Summary
The U.S. Department of Housing and Urban Development announced that non-permanent residents, including H-1B visa holders, are no longer eligible for FHA-insured mortgages. This change, which began on May 25, impacts the ability of these residents to buy homes in the U.S. and has led to a sharp drop in FHA loans to them.
Key Facts
- A new rule prevents non-permanent residents from getting FHA-backed mortgages.
- This rule took effect on May 25, following an executive order by President Trump.
- H-1B visa holders are included in the group affected by this rule.
- In June, less than 1% of FHA loans went to non-permanent residents, a significant drop from previous months.
- The change aims to reserve economic opportunities and federal benefits for U.S. citizens and permanent residents.
- Non-permanent residents must now seek other loan options, which often have stricter requirements.
- The policy may deter H-1B visa holders from staying in the U.S., impacting businesses that rely on skilled workers.
