H-1B Visa Holders Disappear from US Housing Market
3 days ago
- #FHA mortgages
- #immigration policy
- #housing market
- New FHA mortgages to non-permanent residents (NPRs) dropped to near-zero after Trump's executive orders.
- HUD announced NPRs, including H-1B visa holders, are ineligible for FHA-insured mortgages effective May 25.
- NPRs' share of FHA loans fell from ~6% in April to <1% in June and near-zero in July-August.
- NPRs now rely on conventional loans, which have stricter requirements like credit scores and U.S. income documents.
- The policy change impacts entry-level home-buying, especially in Florida and Texas, where NPRs had higher FHA loan shares.
- A new $100,000 H-1B application fee further discourages skilled workers, potentially harming U.S. businesses.
- Nationally, NPRs were only 4% of FHA loans in 2024, so the overall market impact is limited but noticeable in key regions.