H-1B Visa Holders Vanish From U.S. Housing Market

[EyBisa]

he number of new FHA mortgages granted to non-permanent residents, including H-1B visa holders, has plunged to near zero after the Trump administration’s latest immigration crackdown.

In a March 26 letter, the Department of Housing and Urban Development (HUD) announced that non-permanent residents would no longer be eligible for FHA-insured mortgages starting May 25.

The agency said the decision aligns with President Donald Trump’s commitment to “safeguarding economic opportunities for U.S. citizens and lawful permanent residents” and ensuring that federal benefits like FHA loans go only to green card holders.

The impact was immediate.

According to a new report from John Burns Research & Consulting (JBREC), the share of FHA loan volume issued to non-permanent residents fell from 6 percent in April to less than 1 percent in June — and to virtually zero by July and August.

“New FHA mortgages to NPRs have dropped to near zero following the rule change in May,” wrote Alex Thomas of JBREC on X, noting that NPRs accounted for around 4 percent of FHA loans in 2024, with higher numbers in states like Florida.

This shift is forcing H-1B holders and other non-permanent residents to rely on conventional loans, which come with tougher requirements: higher credit scores, documented U.S. income, and long employment histories.

Many visa holders are struggling to meet these conditions, especially amid already high homebuying costs.

Experts warn the move is chilling entry-level homebuying in key markets already grappling with weak sales and oversupply.

“The ban on lending to H-1B visa holders is squeezing entry-level homebuying,” JBREC’s Eric Finnigan said.

[paaparao]

so no FHA home loans to h1b, L1, F1, Daca, Asylum folks? 

they already killed SBA loans to visa holders.

[jalsa01]

H1 share entha us market lo asala

[kevinUsa]

31 minutes ago, paaparao said:

so no FHA home loans to h1b, L1, F1, Daca, Asylum folks? 

they already killed SBA loans to visa holders.

6%

[argadorn]

2 minutes ago, kevinUsa said:

6%

State tax ah

[paaparao]

5 minutes ago, argadorn said:

State tax ah

adi state tax kadu. regular APR compared to FHA apr. basic ga FHA (first time home owners) ki less apr untadi like 4.5% when regular apr is 6%. plus FHA loans ki guaranteed Federal loan backup untadi compared to regular loans.

[jpismahatma]

Lot of desis don’t go for fha.  @Sonu_Patel or @Konebhar6 knows it better.

[Coconut]

Fake news anna…without H1Bs America housing market will collapse 

[HugoStrange]

its just FHA loans, first time home loans are not allowed to H1's. Regular loans are still allowed. Nothing will change

[ARYA]

Never seen any desi going with FHA

[Anta Assamey]

6 minutes ago, ARYA said:

Never seen any desi going with FHA

Me Rich circle lo kanipincharu meeku...

[paaparao]

12 minutes ago, ARYA said:

Never seen any desi going with FHA

Most desis goes for FHA. they don't really see it but most builders and lenders gives FHA only for owners. lekunte vaachipothadi neeku fees and apr.

[anna_gari_maata]

8 minutes ago, paaparao said:

Most desis goes for FHA. they don't really see it but most builders and lenders gives FHA only for owners. lekunte vaachipothadi neeku fees and apr.

ee new construction batch ki anthe migita antha normal loans e .. FHA never saw except for some ppl who knows some referral from citizens 

[jpismahatma]

16 minutes ago, paaparao said:

Most desis goes for FHA. they don't really see it but most builders and lenders gives FHA only for owners. lekunte vaachipothadi neeku fees and apr.

Explain anna. I put 20% down. I did not do fha. I was on h1b

[akkum_bakkum]

47 minutes ago, paaparao said:

Most desis goes for FHA. they don't really see it but most builders and lenders gives FHA only for owners. lekunte vaachipothadi neeku fees and apr.

ideppatnunchi....I do not know anyone getting FHA loan.