FHA Just Cut Off Non-Permanent Residents. Here Are 5 Other Programs to Buy a Home

Starting May 25, 2025, non-permanent residents—including many visa holders and DACA recipients—are no longer eligible for FHA loans under the Title I program.

This change affects anyone looking to use FHA financing for manufactured homes or home improvements.

But losing FHA doesn’t mean losing your shot at homeownership.

Lost FHA Access? See What You Still Qualify For

Here are six programs that still make it possible to buy a home, even if you’ve been denied by a traditional lender or don’t qualify for a mortgage right now.

FHA Loan Rules Changed in 2025: What Non-Permanent Residents Need to Know

As of May 25, 2025, the Federal Housing Administration (FHA) no longer allows non-permanent residents to use its loan programs.

If you are in the U.S. on a visa, DACA status, or another temporary immigration category, this rule means you can no longer qualify for an FHA-insured loan—even if you have steady income, credit history, or past rental experience.

Lost FHA Access? See What You Still Qualify For

🛑 Who No Longer Qualifies for FHA Loans in 2025

As of May 25, 2025, the FHA has cut off loan access for many non-citizen buyers who don’t have permanent legal status.

• DACA recipients

• Visa holders (e.g. H-1B, F-1, L-1)

• TPS holders

• Asylum applicants

• EAD holders without a green card

• ITIN users without legal residency

• Undocumented individuals

• Anyone without U.S. citizenship, a green card, or COFA status

But while FHA is no longer an option, several other homeownership programs are still available to help you move forward.

Lost FHA Access? See What You Still Qualify For

Earned Equity With FHA Loan Program

Best for buyers who can’t qualify for a mortgage right now but want a secure, legal path to homeownership while living in the home and building equity over time.

How it works

This unique program lets you pick a home and move in right away—without needing to qualify for a mortgage upfront.

A tribal housing agency buys the home using an FHA loan, and you enter into a long-term lease with the option to buy at any time.

Your monthly payments build equity, and when you’re ready, you can either refinance or assume the FHA loan and take full ownership.

Who it’s for

• Self-employed or gig workers

• Buyers using an ITIN instead of an SSN

• People recovering from credit challenges

• Those with stable income but no mortgage approval yet

Key benefits

• Move in without a mortgage

• Choose your own home

• Build equity while you live there

• Option to buy when you’re ready

• Fully documented, secure, and backed by FHA lending standards

Lost FHA Access? See What You Still Qualify For

Rent-to-Own Programs

Best for non-permanent residents who were denied FHA loans but still want to move into a home now and work toward ownership without needing a mortgage upfront.

How it works

With rent-to-own, you lease a home now with the option to buy it later. A portion of your rent goes toward your future down payment. It’s a flexible way to become a homeowner if you can’t qualify for a mortgage just yet.

Popular providers

• Divvy Homes

• Dream America

• Home Partners of America

Requirements

• Stable income

• Credit score typically 550+

• Small upfront option fee (1–2% of purchase price)

Best part

Immigration status is often not a disqualifier—these companies usually focus more on your income and rental history.

Lost FHA Access? See What You Still Qualify For

ITIN Home Loans

Best for Buyers without a Social Security Number

How it works

ITIN loans are designed for borrowers who file taxes with an Individual Taxpayer Identification Number (ITIN). These loans are not backed by FHA or Fannie Mae, but private lenders and credit unions offer them with flexible terms.

Requirements

• ITIN

• Verifiable income (W-2s or bank statements)

• Valid photo ID

• Down payment of 10–20%

Best part

You don’t need a Social Security number or legal permanent residency to qualify.

Lost FHA Access? See What You Still Qualify For

Conventional Loans (Fannie Mae & Freddie Mac)

Best for Non-permanent residents with legal work authorization

How it works

Fannie Mae and Freddie Mac both allow non-permanent residents (like DACA recipients, visa holders, and refugees) to qualify for conventional mortgages under the same terms as U.S. citizens.

Requirements:

• Valid visa or EAD (Employment Authorization Document)

• SSN or ITIN

• Good credit (620+) and stable income

• Down payment as low as 3%

Best part

Same interest rates and down payment options as any other buyer.

Lost FHA Access? See What You Still Qualify For

Florida Hometown Heroes Program

Best for non-permanent residents who just lost FHA eligibility but still want down payment help through a program that accepts DACA recipients and some visa holders.

How it works

Florida provides up to $35,000 in down payment and closing cost assistance for first-time buyers with full-time jobs. You combine this with a conventional loan to reduce your out-of-pocket cost.

Eligibility

• Full-time employment in Florida

• First-time homebuyer

• Income and home price limits apply

• Must qualify for a conventional loan

• SSN and valid U.S. presence (DACA and some visa holders may qualify)

Best part

This program is explicitly open to DACA recipients and some visa holders.

Lost FHA Access? See What You Still Qualify For

Final Thoughts

FHA may have shut one door—but you’ve still got several windows wide open.

Whether you're a self-employed buyer, use an ITIN, or are just not ready for a mortgage, you still have real paths to homeownership.

Want help exploring your options?

Start by checking your eligibility for the Earned Equity With FHA Loan Program, or talk to a lender who understands non-traditional borrowers.

Lost FHA Access? See What You Still Qualify For