HUD Cracks Down on Mortgage Assistance for Illegal Immigrants

by Seamus Othot | Mar 28, 2025

The U.S. Department of Housing and Urban Development (HUD) updated its guidelines on Wednesday to ensure that illegal immigrants and non-permanent residents aren’t receiving government-backed mortgages.

“HUD-backed mortgages should benefit Americans who play by the rules and work hard, not those who enter our country illegally. Today, HUD acted to protect the American Dream of homeownership,” said HUD Secretary Scott Turner on X.

The HUD has altered the requirements for its Federal Housing Administration (FHA) loans, insured by the federal government, that help prospective homebuyers get low down payment mortgage loans with easy credit qualifications.

The change revised residency requirements to remove the sections pertaining to “non-permanent residents,” thereby excluding illegal immigrants and any legal immigrants that do not have permanent status.

The change also applies to Deferred Action for Childhood Arrivals (DACA), commonly known as Dreamers, reversing a Biden-era policy that allowed them to apply for government-backed loans. The change also excludes anyone with a pending asylum claim or pending refugee status.

“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,” said Turner.

The change comes as HUD works to comply with a February executive order from President Donald Trump demanding an end to taxpayer-funded programs for illegal immigrants.

Earlier this week, the U.S. Department of Health and Human Services (HHS) Administration for Children and Families (ACF) urged its state-level partners to ensure that illegal immigrants are not receiving Temporary Assistance for Needy Families (TANF) cash benefits intended for struggling American families.

Seamus Othot is a reporter for The Maine Wire. He grew up in New Hampshire, and graduated from The Thomas More College of Liberal Arts, where he was able to spend his time reading the great works of Western Civilization. He can be reached at [email protected]

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