Article Summary

Following a Trump administration executive order and a subsequent Department of Housing and Urban Development announcement, non-permanent residents, including H-1B visa holders, became ineligible for FHA-insured mortgages in May. New data from John Burns Research & Consulting indicates that the share of FHA loans granted to non-permanent residents dropped to near-zero by July and August, down from over 6% in April. This policy shift forces non-permanent residents to rely on conventional loans, making homeownership significantly more challenging for them.

TNP AI: Key Insights

This policy shift directly impacts the financial stability and long-term planning of H-1B visa holders by severely limiting their access to favorable mortgage options, making homeownership significantly more challenging. Previously, these individuals had access to FHA-insured loans, which often require lower down payments and offer more flexible credit requirements than conventional loans.

Beyond individual impact, this contributes to a broader trend of policies that could diminish the U.S.'s attractiveness to skilled international talent, potentially affecting tech companies and other businesses reliant on foreign-born professionals. The restriction on FHA loans, coupled with other measures like increased visa fees, could prompt skilled workers to consider countries with more welcoming immigration and economic policies.