FHA to Exclude Non-Permanent Residents After May 25, 2025

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FHA Announces Deadline: Non-Permanent Residents No Longer Eligible for FHA Loans Starting May 25, 2025

A significant change is coming to the Federal Housing Administration’s (FHA) loan eligibility policies. Beginning May 25, 2025, FHA will no longer allow financing for non-permanent residents. This means that borrowers on H1B, L1, or other temporary work visas, or those qualifying with an EAD and SSN but without permanent resident status, will no longer be eligible for FHA-insured loans for new case numbers assigned on or after that date.

 

If you’re working with buyers on temporary visas or those without permanent resident status, this change could impact their ability to secure FHA financing. However, there is good news if you’re already working with non-resident buyers under contract. As long as an FHA case number has already been ordered before the May 25 deadline, these loans will be fully protected and can still close even after the new rules take effect.

However, if you’re helping clients in this category who are still shopping for a home or just starting the process, they must act quickly and ensure that an FHA case number is ordered before May 25, 2025. 

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Record High Down Payments Continue in Q4 2024 as Buyers Leverage Pandemic Savings and Home Equity

New data from Realtor.com® reveals that down payments continued to rise in the fourth quarter of 2024, reaching a new record high. The typical down payment was $30,250, slightly below the third quarter but $3,000 higher than the previous year. Overall, down payments have surged by 3.4 percentage points compared to pre-pandemic levels in 2019.

This trend is fueled by higher home prices and stronger buyers—those with pandemic-era savings and increased home equity. High-earning buyers are making larger down payments, especially as higher mortgage rates encourage them to minimize loan sizes. In fact, down payments in higher-priced markets—like homes over $750,000—rose by 7.4% last year.

However, modest down payments have also seen growth, though still below pandemic-era peaks. For example, the typical down payment for first-time buyers in the 30th percentile was about $8,200 in Q4 2024, up 6.5% year-over-year.

Looking ahead, Realtor.com® Chief Economist Danielle Hale suggests that as mortgage rates ease, a more diverse range of buyers could enter the market—but if inventory stays low, competition might drive down payments even higher.

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Kelowna Unveils First Hemp-Insulated Home

And in international news out of Canada, in a groundbreaking move for sustainable residential construction, Wilden, Kelowna’s largest master-planned community, has unveiled the Okanagan’s first hemp-insulated home—and one of the first in British Columbia. Located in Wilden’s Echo Ridge neighborhood, this net-zero ready home is designed to meet the highest energy efficiency standards, featuring hemp insulation, a material known for its carbon-negative properties and ability to improve thermal efficiency and indoor air quality.

The home, a 5-bedroom, 3.5-bathroom beauty with over 2,400 square feet of living space, utilizes hemp to replace traditional fiberglass insulation, reducing embodied carbon and enhancing the building’s environmental footprint. With features like solar-optimized design, an air-source heat pump, and EV charging readiness, this home is designed to reduce energy costs and offer sustainable living for years to come.

Wilden’s CEO Karin Eger-Blenk praised the project, saying, “Building with hemp insulation is an exciting step forward in sustainable construction.” The home is built to meet B.C. Energy Step Code 5 standards, making it a leading example of eco-friendly living in the region.

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