Big FHA Update: Who Can Qualify for FHA Loans Just Changed (March 2025)

If you’re planning to buy a home with an FHA loan—or helping someone who is—there’s an important update you need to know.

As of May 25, 2025, the FHA is changing who is eligible to get an FHA-insured mortgage. These loans are popular with first-time buyers because of their lower credit score and down payment requirements. But now, the rules around immigration status have shifted.

🔁 What Changed?

✅ Who’s Still Eligible:

  • U.S. Citizens

  • Lawful Permanent Residents (aka “green card holders”)

⛔ Who’s No Longer Eligible (starting May 25, 2025): Borrowers who are non-permanent residents — even if they were previously allowed under FHA guidelines — are now excluded.

👥 Who Does This Impact?

Previously eligible but now excluded:

  • Individuals in the U.S. with a valid work visa (e.g. H-1B, L-1, TN, EADs under DACA or asylum)

  • Borrowers with temporary protected status (TPS)

  • Those under Deferred Action for Childhood Arrivals (DACA) with valid SSNs

  • Foreign nationals with legal residency and employment authorization but no green card

Under prior FHA guidelines, these borrowers could be approved for FHA loans if:

  • They had a valid Social Security number,

  • Were eligible to work in the U.S., and

  • Intended to occupy the home as a primary residence.

That option is now gone.

📑 What You may Need to Show

To qualify going forward, borrowers may be asked to provide:

  • A U.S. birth certificate or passport (for citizens)

  • A valid green card (for lawful permanent residents)

Social Security cards, EADs (employment authorization documents), or visas will no longer be enough.

🧭 Why This Matters for You

  • Homebuyers: If you don’t have a green card or U.S. citizenship, talk to a mortgage advisor about conventional loan options.

  • Real Estate Agents: Make sure your buyers are clear on their residency status before going under contract with FHA financing.

  • Loan Officers: We will continue to confirm that each buyer meets program guidelines.

📅 When Does This Start?

May 25, 2025 — any FHA case number assigned on or after this date must follow the new rules.

At Maritime Mortgage, we’re here to help you navigate these updates and find the right loan fit—no matter your background. If you or your clients have questions about how this change affects them, let’s talk.

Home Buying, FHA, ResidencyMMCFHA, HUD, PresidentComment