Announcement 2025 - 12

HUD Revises Residency Requirements for FHA Loans

MK Lending is aligning with the recent announcement from the U.S. Department of Housing and Urban Development (HUD).

The announcement is summarized below.

HUD has published Mortgagee Letter 2025-09 that reflects an update on residency requirements for financing backed by FHA. DACA and Non-permanent borrowers will be ineligible for FHA financing if their FHA case numbers are assigned on or after May 25, 2025.

Permanent residents must provide proof of lawful permanent resident status.

Citizens of the Federated States of Micronesia, Republic of the Marshall Islands, and Republic of Palau remain eligible under existing guidelines.