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HUD revises residency requirements for FHA loans


The Federal Housing Administration published revisions to residency requirements that will eliminate the “Non-permanent Residents” category in both the Single Family Title I and Title II programs.

March 27, 2025 / By ICBA

The Federal Housing Administration published revisions to residency requirements that will eliminate the “Non-permanent Residents” category in both the Single Family Title I and Title II programs.

Details: The FHA issued the changes via Mortgagee Letter 2025-09 and Title I Letter TIL-490 to align the FHA’s residency requirements with recent executive orders.

Timeline: The FHA said the provisions of the new requirements may be implemented immediately but must be implemented for FHA case numbers assigned on or after May 25.

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