The number of new FHA mortgages granted to non-permanent residents, including H-1B visa holders, has plunged to near zero after the Trump administration’s latest immigration crackdown.
In a March 26 letter, the Department of Housing and Urban Development (HUD) announced that non-permanent residents would no longer be eligible for FHA-insured mortgages starting May 25.
The agency said the decision aligns with President Donald Trump’s commitment to “safeguarding economic opportunities for U.S. citizens and lawful permanent residents” and ensuring that federal benefits like FHA loans go only to green card holders.
The impact was immediate.
According to a new report from John Burns Research & Consulting (JBREC), the share of FHA loan volume issued to non-permanent residents fell from 6 percent in April to less than 1 percent in June — and to virtually zero by July and August.
“New FHA mortgages to NPRs have dropped to near zero following the rule change in May,” wrote Alex Thomas of JBREC on X, noting that NPRs accounted for around 4 percent of FHA loans in 2024, with higher numbers in states like Florida.
This shift is forcing H-1B holders and other non-permanent residents to rely on conventional loans, which come with tougher requirements: higher credit scores, documented U.S. income, and long employment histories.
Many visa holders are struggling to meet these conditions, especially amid already high homebuying costs.
Experts warn the move is chilling entry-level homebuying in key markets already grappling with weak sales and oversupply.
“The ban on lending to H-1B visa holders is squeezing entry-level homebuying,” JBREC’s Eric Finnigan said.
