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.
