Housing and Urban Development (HUD) Secretary Scott Turner announced residency requirements for Federal Housing Administration (FHA)-insured mortgages were changed to eliminate the “non-permanent residents” category from the Title I and Title II programs.
In a statement, Turner said the policy update was designed to prevent illegal immigrants and non-permanent residents from accessing FHA-insured financing.
“There will be no more illegal aliens getting HUD-backed home loans,” said Turner in a statement. “The Biden administration exploited taxpayer resources and manipulated FHA policy to allow illegal aliens to ride the coattails of the American taxpayer when financing on a home. For those who play by the rules and work hard to purchase a home, it is unconscionable. HUD will continue to implement President Trump’s executive order ending taxpayer subsidization of open borders and protecting the American Dream of homeownership.”
This is the second action by Turner this week targeting illegal immigrants. On Monday, Turner and Department of Homeland Security (DHS) Secretary Kristi Noem signed the “American Housing Programs for American Citizens” Memorandum of Understanding, with HUD agreeing to provide a full-time staff member to assist in operations at the Incident Command Center, establishing an interagency partnership to facilitate data sharing, with the goal of ensuring taxpayer-funded housing programs do not benefit illegal immigrants. HUD noted there are about 9 million residents of public and subsidized housing without proper information sharing to determine their eligibility status.
Photo: HUD Secretary Turner and DHS Secretary Noem
Illegals have never had the option of using a FHA loan! This is a very misleading article. To be able to get approved for an FHA loan you need to provide proof of lawful residency in the United States! This affect is non-citizen who are in the country LEGALLY; but they are under some kind of visa or in an adjustment of status process (pending asylum). These people pay taxes and are in the country legally. Such fake news!
My thoughts exactly, but it would be great if the article provided some research and background on this. What are the stats?
Andrea is correct, she sounds like she has a background in lending.
I’m sorry but yes they have! I’m a Realtor who had a house listed for sale. An offer came from an illegal the did not have any documentation at all, but he had his 20% down. We went through the entire process for it to die because he went back to Mexico and apparently didn’t come back. Had he stayed, he would have been in that home.
Lisa, that could not have been an FHA loan that the HUD policy changes was supposed to address. There are investors out there in non- conforming market that lend to that category of buyers. Not an FHA program. We need to separate facts from fiction. There are private institutional investors/lenders that have cornered this niche market for over 2 decades of my professional experience in real estate sales and as a loan originator.
Came here to say this. So fake and incites more racism and hatred.
Fake news, i been selling houses for 27 years , never sold a house to non documented buyer, FHA loan is very strict. Rich Investors from any country came to USA and buy anything they want without any restrictions.
Regardless of how one feels about the policy change, it would be nice if the announcement would be made plainly without the partisan political ingredient.
Thanks Clyde,
Lilian. You are very right. You know the article is meant to gas light the ignorant American citizens who believe everything that comes from their media echo chambers.
True also Olu,
If this is meant to stop illegal citizens from buying property, then why not stop them at all financil institutions…all levels. To stop just FHA, then it’s worthless news, fake news to make the current administration look as if they were seemingly protecting US citizens rights. And a waste of tax dollars to put this into effect.
Bingo, Andrea! I wish they would focus on the things that are actually happening in this world than leading us to believe things are happening that aren’t. So frustrating and totally goes against the grain of actual accomplishment or improvement.
It’s insane and scary how much we’ve been giving away!! Still blows me away how easily “illegal” is just so casually dismissed. Our country was founded by immigrants. We need and allow immigrants. We are also ruled by law. The fact that our government has been so lax, intentionally, in enforcing our laws is treasonous.
The FHA loans offered benefits like down payments as low as 3.5% and more lenient credit requirements, making homeownership more accessible. This effectively extended taxpayer-supported benefits to illegal immigrants, as DACA status stems from an executive action rather than a legislative path to citizenship.
Fake News!
I’d like to hear from someone who actually knows/knew an illegal alien who completed a purchase with an FHA loan…the one mentioned here was not completed.
Good point sir. It’s all speculation. No substance.
For illegal immigrants we don’t have any FHA or any federal or state help at all, they do what they can do to buy bringing their 20% and with a higher interest at around 8.5%. They work so hard to get their homes that is not even funny, no down payment assistance, no 3.5% down payment, I don’t know what you are talking about, lenders need to ask for a lot of information and they ask for their driver license that is different when they are illegal immigrants but give them the opportunity to buy insurance, then no it is harder for them to buy a home and they never use an FHA or a conventional Freddie or Fannie Mae loan, We all know that.
I remember back in the boom times of 2006 years, we had illegals submit SSN’s, when applying for an FHA loan. The numbers would often be no good, and after submitting several other SSN’s, one would be found that worked and viola, FHA loan approved. I didn’t know it was happening again.
I will no longer read your WRE News. You print many non-factual articles.
If you have a problem with the content of this story, please get in touch with HUD. This is the source of the story – https://www.hud.gov/press/press_releases_media_advisories/hud_no_25_048
We don’t invent the news, we just report it.
This eliminates people with valid Work Permits their Social Security cards will note “FOR WORK PURPOSES ONLY”. These people have taken the first step in applying for a Permanent Resident Card. This process can take 10 years for many to secure Permanent Resident card.
As the old saying goes “A few bad apples ruin it for the many”. You are correct an FHA borrower must be a legal resident with a valid Soc. Sec card. HUD probably reviewed past files and found some loans with out proper residency. Now because of these bad loans. We have what we have today.
Im a Realtor in north texas for 47 years, semi retired very high percentage of the homes i sold were fha loans, i dont remember ever having an illigetimate buyer. The second part of this article concerns me more “interagency partnership to facilitate data sharing”, does this mean files of previous fha buyers and their personal information will be shared??? just a side note (maybe someone can answer this) fha mortgage insurance is on all these loans some at very high rates and many years where is this money?