The US Department of Housing and Urban Development (HUD) has recently revised its residency requirements for Federal Housing Administration (FHA) loans, effectively removing eligibility for “non-permanent residents” (NPRs) to receive FHA-backed mortgages.

The FHA loan program, which helps low-income and subprime borrowers secure home loans with as little as a 3.5% down payment, traditionally offers government-backed insurance that protects lenders in case of borrower default.

However, under the new rule change, NPRs, including those on employment-based H-1B visas , are no longer eligible for FHA insurance.

This policy shift, announced in March and enacted on May 25, was part of an effort to prioritise economic opportunities for US citizens and lawful permanent residents, as stated

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