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HUD ends FHA loans, public housing, shelters for illegals: Will be for ‘Americans who play by the rules’

March 27, 2025 | | Print Article

Those in the U.S. illegally will no longer be able to secure federal home loans as the Trump administration ended a Biden-era policy.

Some of the Federal Housing Administration (FHA) mortgages for illegal immigrants were terminated by the Department of Housing and Urban Development (HUD).

“Today, HUD terminated Biden’s taxpayer-backed FHA mortgages for illegal aliens,” HUD Secretary Scott Turner announced on X. “American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”

“We are ensuring that any public housing is going to be used for American citizens,” Turner told Fox Business host Maria Bartiromo.

HUD-backed mortgages should help Americans “who play by the rules and work hard, not those who enter our country illegally,” he wrote in another post on X. “Today, HUD acted to protect the American Dream of homeownership.”

“Currently, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country,” Deputy Assistant Secretary for Housing Jeffrey Little wrote in a letter to mortgage lenders. “This uncertainty poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”

“In the past, FHA’s residency requirements have required Mortgagees to document the Borrower’s lawful residency status, demonstrating long-term financial stability and eligibility for federal programs,” Little added. “FHA does not retain citizenship or residency data from the loan application and therefore does not maintain information on the number of non-permanent residents who have received FHA-insured loans under past policies.”

“This update ensures that FHA’s mortgage insurance programs are administered in accordance with Administration priorities while fulfilling its mission of providing access to homeownership,” he wrote.

Earlier this week, Turner met with U.S. Department of Homeland Security (DHS) Secretary Kristi Noem to sign a memo “to end the wasteful misappropriation of taxpayer dollars to benefit illegal aliens instead of American citizens.”

“American tax dollars should be used for the benefit of American citizens, especially when it comes to an issue as pressing as our nation’s housing crisis,” Turner said. “This new agreement will leverage resources, including technology and personnel, to ensure the American people are the only priority when it comes to public housing. We will continue to work closely with DHS to maximize our resources and put American citizens first.”

“The Biden Administration prioritized illegally (sic) aliens over our own citizens, including by giving illegal aliens taxpayer-funded housing at the expense of Americans. Not anymore,” Noem said in a statement, according to a HUD press release.. “The entire government will work together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally. If you are an illegal immigrant, you should leave now. The gravy train is over.”

Frieda Powers
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