An Important Update on FHA Guidelines

First Heritage Mortgage | March 27, 2025

On Wednesday, March 26, 2025, the Department of Housing and Urban Development (HUD) announced an important update regarding FHA financing guidelines.

HUD has announced that non-permanent residents will no longer be eligible for FHA financing, starting in May. This is a change from the previous policy, where certain non-permanent residents (such as individuals with specific types of visas or work permits) could qualify.

What This Means for Homebuyers

  • For non-permanent residents planning to apply for an FHA loan, it may be necessary to work with their lender to explore other mortgage options.
  • If you’re currently in the home buying process and considering an FHA loan, assessing your eligibility is important before the new guidelines take effect.

How Real Estate Professionals Can Support Their Clients

  • Review your pipeline: Identify any clients who may be impacted by this policy shift.
  • Stay informed: Ensure you understand the latest guidelines and can advise your clients accordingly.
  • Partner with a knowledgeable lender: Working with a lender who can offer alternative loan programs will be key to ensuring a smooth homebuying process.

Explore Your Options

While FHA financing may no longer be available for non-permanent residents, many loan programs remain to explore. Conventional loans and other financing options may be viable alternatives.

For further details on the policy change, you can read HUD’s official memo here:

Our loan officers are happy to help you navigate this change and look at other available programs for these buyers. We have a wide variety of alternative mortgage products that may be able to help bridge the gap for those who need it. Don’t hesitate to reach out to them if you have questions or want to talk through specific scenarios.

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The included content is intended for informational purposes only and should not be relied upon as professional advice. Additional terms and conditions apply. Not all applicants will qualify. Consult with a finance professional for tax advice or a mortgage professional to address your mortgage questions or concerns. This is an advertisement. Prepared 03/27/2025.