In alignment with the latest directives from the Federal Housing Administration (FHA) and the U.S. Department of Agriculture (USDA) Single Family Housing Guaranteed Loan Program (SFHGLP), we are implementing the following policy updates effective immediately:

1. FHA Mortgagee Letter 2025-09: Revisions to Residency Requirements

The FHA has issued Mortgagee Letter 2025-09, updating borrower residency requirements for FHA-insured financing. Key points include:

• Residency Requirements: Only U.S. citizens and lawful permanent residents are eligible for FHA-insured mortgages. Non-U.S. citizens without lawful permanent residency status are no longer eligible for FHA financing.
• Effective Date: This change applies to FHA case numbers assigned on or after May 25, 2025.

For detailed information, please refer to Mortgagee Letter 2025-09 (hud.gov).

2. USDA SFHGLP Guideline Updates Announced March 18, 2025 – Retraction of Non-U.S. Citizen Eligibility

The USDA has updated Single Family Housing Guaranteed Loan Program (SFHGLP) guidelines, including the retraction of non-U.S. citizen eligibility:

• Non-U.S. Citizen Eligibility Rescinded: Effective immediately, USDA SFHGLP loans are no longer available to non-U.S. citizens. Eligibility is now restricted to U.S. citizens and lawful permanent residents.
• Income and Asset Documentation: Lenders must verify IRS transcripts for all adult household members (except full-time students) prior to loan closing.

For comprehensive details, refer to the USDA SFHGLP update (rd.usda.gov).

If you have any questions, please contact Brian Hunt, bhunt@ahfa.com.