On March 26, HUD Secretary Scott Turner announced a policy change regarding FHA loans, declaring that the FHA has revised its residency requirements to remove access to FHA-insured mortgages for unauthorized immigrants by eliminating the “non-permanent residents” category from its Title I and Title II programs. This policy update reportedly aims to prioritize U.S. citizens in taxpayer-funded housing programs. The revised requirements, effective May 25, will be published in a future version of HUD’s Single Family Housing Policy Handbook 4000.1.

The policy will impact Deferred Action for Childhood Arrivals (DACA) recipients and individuals with pending asylum or refugee status, as their residency status lacks guaranteed renewal. This change reverses a previous policy from the Biden administration that allowed DACA recipients with valid Social Security numbers and work eligibility to access FHA loans. Secretary Turner emphasized that this change aligns with President Trump’s executive orders on immigration. The announcement also mentions a Memorandum of Understanding between HUD and the Department of Homeland Security to coordinate efforts against taxpayer-funded public housing for unauthorized immigrants.