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Non-Permanent Resident Aliens No Longer Eligible for FHA Loans
Effective for Case Numbers Assigned On or After May 25, 2025, FHA has announced a major policy change:
Non-Permanent Resident Aliens will no longer be eligible for FHA-insured financing.
Only U.S. Citizens, Lawful Permanent Residents, and citizens of Micronesia, the Marshall Islands, or Palau will qualify.
This change applies to all FHA Title II Single Family Forward and HECM (Reverse Mortgage) programs and reflects a policy shift to ensure long-term financial stability for FHA-insured loans.
Action Steps for Lenders and Partners:
- Review Mortgagee Letter 2025-09 (attached) in full.
- Confirm with your investors whether they:
- Intend to implement this change immediately, or
- Will adhere to the May 25, 2025 effective date.
CLICK HERE to access the Full Mortgagee Letter 2025-09 for your reference.
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