The Trump administration has officially ended access to Federal Housing Administration (FHA) mortgages for illegal migrants, Housing and Urban Development Secretary Scott Turner announced Wednesday.
“Today, HUD terminated Biden’s taxpayer-backed FHA mortgages for illegal aliens,” Turner wrote on X. “American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”
A HUD official notified FHA-approved mortgage lenders on Tuesday that non-permanent residents will also be ineligible for the government-backed, low-income home loan program.
“Currently, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country,” Deputy Assistant Secretary for Housing Jeffrey Little stated in a letter to mortgagees. “This uncertainty poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”
FHA Loans Now Restricted to Citizens and Permanent Residents
While the exact number of non-permanent residents who have received FHA mortgages remains unclear, Little confirmed that moving forward, they will no longer qualify.
“In the past, FHA’s residency requirements have required Mortgagees to document the Borrower’s lawful residency status demonstrating long-term financial stability and eligibility for federal programs,” he explained. “FHA does not retain citizenship or residency data from the loan application and therefore does not maintain information on the number of non-permanent residents who have received FHA-insured loans under past policies.”
“This update ensures that FHA’s mortgage insurance programs align with Administration priorities while continuing its mission of providing access to homeownership,” he added.
DACA Recipients and Asylum Seekers Now Barred From FHA Loans
In 2021, the Biden administration allowed FHA lenders to extend government-backed home loans to non-permanent residents enrolled in the Deferred Action for Childhood Arrivals (DACA) program.
Under the new policy, DACA recipients—undocumented migrants brought to the U.S. as children—as well as individuals with pending asylum claims, will no longer qualify for FHA mortgages.
“HUD is prioritizing Americans, not illegal aliens,” Turner wrote in another X post. “@POTUS promised to end taxpayer subsidies for illegals, and today, we put an end to illegals receiving FHA home loans.”
Broader Crackdown on Housing Benefits for Illegal Migrants
This policy shift follows HUD’s recent announcement that it will collaborate with the Department of Homeland Security to prevent illegal migrants from accessing public housing.
Citing data from the Center for Immigration Studies, HUD reported that approximately 59% of illegal migrant households receive at least one form of government assistance, costing taxpayers an estimated $42 billion.
The agency also revealed that at least 9 million residents currently occupy public or subsidized housing “without proper information sharing to determine eligibility status.”
