New federal rules cut off FHA loans for non-permanent U.S. resident homebuyers

FHA Loans No Longer Available for Non-Permanent U.S. Residents

New rules from the U.S. Department of Housing and Urban Development (HUD) mean non-permanent U.S. residents no longer qualify for government-backed FHA mortgages.

HUD’s secretary confirmed the change in a social media post last month, stating:

“American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”

One Local Bank Isn’t Turning Its Back

While many lenders are now stepping away from borrowers who use Individual Taxpayer Identification Numbers (ITINs), First Pryority Bank says it’s doing the opposite—doubling down on its commitment to help.

“They’ve Been Paying Their Taxes and Doing the Right Thing”

First Pryority Bank says it has long offered an in-house lending program for ITIN borrowers, independent of federal guidelines.

Clay Carden, Senior VP at First Pryority Bank:

“As long as we’re helping the community—people who’ve been here at least two years and are paying taxes—we can offer them a loan to buy a house.”

These borrowers have ITINs, are in good standing with the IRS, and are often on a path to citizenship.

New Construction Projects Already Feeling the Impact

Carden says the policy change is already affecting local housing developments.

“It’s impacting some of our competitors and the buyers they were helping,” he says. “We’re working with builders now to shift those clients into our local program.”

A Bank Rooted in Community

Founded in Pryor, Oklahoma, First Pryority Bank has served the community for more than 100 years. Carden says their goal is to support people, not just profits.

Carden:

“We believe it’s important to help people and grow the community. That’s why we’ve offered this program since 2019—and we’re not stopping now.”

Hundreds Already Helped

The bank says it currently services hundreds of ITIN clients and doesn’t expect pushback from regulators, because these loans are privately managed and not sold to the government.

What’s Not Affected?

It’s important to note: This change only impacts FHA loans. Conventional mortgages remain unaffected.