In yet another episode of “America First, Mortgages Last (Unless You Have a Green Card),” the number of new FHA mortgages handed to non-permanent residents, including the ever-popular H-1B visa holders, has nosedived to near extinction. Following a fresh squeeze from the Donald Trump administration, access to these government-backed home loans has been cordoned off with bureaucratic precision, claimed reports.
The Department of Housing and Urban Development, in a March 26 letter, declared that starting May 25, non-permanent residents would be politely shown the door when applying for FHA-insured mortgages. This shift, HUD claimed, reflects President Donald Trump’s mission to “safeguard economic opportunities for U.S. citizens and lawful permanent residents” and to ensure that FHA benefits stay within the trusted hands of green card holders.
The fallout was swift and measurable.
Reports mentioned that according to John Burns Research & Consulting (JBREC), non-permanent residents saw their share of FHA loan volume plummet from a respectable 6 percent in April to under 1 percent in June, before bottoming out completely by July and August. As Alex Thomas of JBREC pointed out on X: “New FHA mortgages to NPRS have dropped to near zero following the rule change in May,” adding that NPRS made up around 4 percent of FHA loans in 2024, with even higher representation in sun-drenched states like Florida.
With FHA doors firmly closed, H-1B visa holders and their fellow non-permanent residents are being nudged, more like shoved, towards conventional loans. These, of course, come with all the charm of higher credit score demands, exhaustive income documentation, and employment histories that suggest you’ve been working since the womb. For many, already staggering under the weight of inflated housing costs, these new hoops are more wall than ladder.
Experts are raising red flags, especially in markets where entry-level home sales are already on life support. “The ban on lending to H-1B visa holders is squeezing entry-level homebuying,” said Eric Finnigan of JBREC, capturing the mood of a segment of buyers who now find themselves priced out not just by dollars, but by policy.
Also Read: H-1B Visa Fee Hike Sparks Chaos, Confusion, Online Disruption https://www.vibesofindia.com/h-1b-visa-fee-hike-sparks-chaos-confusion-online-disruption/
