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New federal mortgage restrictions could make it harder for some immigrants to get a loan

 home under construction in Cornelius NC
David Boraks
/
WFAE
A home under construction.

The Trump administration said last week that it will block nonpermanent U.S. residents from receiving Federal Housing Administration mortgage loans — a move that could make it more difficult for many local immigrants to get a loan.

FHA loans help low-income individuals buy homes. The Trump administration said the change will ensure undocumented immigrants do not use federal housing programs.

Previously, the Biden administration allowed nonpermanent residents with work visas to qualify for FHA loans. That included people brought to the U.S. as children and were under the Deferred Action for Childhood Arrivals program, or DACA; residents with temporary protected status; asylum-seekers; and other nonpermanent immigration situations.

Starting in May, only U.S. citizens and permanent residents — generally those with a green card or U.S. citizenship — can qualify. FHA loans were never given to undocumented immigrants unless they had an Individual Tax Identification Number.

"This shrinks the pool of people we could lend to, but that doesn't mean it's the majority of our business," UpMortgage's William Caballero said. "But it will have an impact. We do have a significant number of clients on work permits."

Caballero said nonpermanent residents can still apply for conventional loans, but those usually require a higher credit score.

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A fluent Spanish speaker, Julian Berger will focus on Latino communities in and around Charlotte, which make up the largest group of immigrants. He will also report on the thriving immigrant communities from other parts of the world — Indian Americans are the second-largest group of foreign-born Charlotteans, for example — that continue to grow in our region.