Big FHA Loan Update: Visa Holders No Longer Eligible (As of March 26)

Jennifer Hernandez • April 22, 2025

If you're planning to buy a home in the U.S. and you're currently on a work visa or other visa status, this news directly impacts you.

As of March 26, the FHA (Federal Housing Administration) announced it will no longer accept applications from visa holders, regardless of the type of visa. This change may come as a shock, especially if you’re in the middle of the homebuying process or have already been pre-approved.

Let’s break down what this means—and what options are still available to you.

What Changed with FHA Loans?

FHA loans are known for offering:

Low down payments (as low as 3.5%)
Flexible credit requirements
Often paired with down payment assistance programs

As of March 26, 2025 , FHA is no longer processing loans for borrowers on any type of visa, which includes:

H-1B
L-1
E-2
O-1
And other work or temporary residency visas

If you’ve already been pre-approved for an FHA loan and you’re on a visa, you need to contact your lender immediately.

Loan Alternatives

If you're on a visa and now can’t move forward with FHA financing, don’t panic—you may still qualify for other loan types.

✅ Conventional Loans

Higher credit score requirements
Typically require at least 5% down, though some programs offer 3% for first-time buyers
Visa holders may be eligible, but it varies by lender

Learn the differences between FHA and Conventional Loans on the Loan With Jen YouTube channel

✅ Non-QM Loans

These are called “non-qualified mortgages,” and while they usually come with higher rates or down payment requirements, they can be a lifeline for borrowers needing to buy a house.

Wondering what your best option is? Is your current lender not guiding you? Contact Loan With Jen and we can review your current pre-approval and share with you the best alternatives for your situation.

Important Next Steps

Talk to your lender right away.
Ask if they offer conventional or non-QM loan options for visa holders.
Review your down payment ability.
Conventional loans will require more upfront funds than FHA. If you were using a down payment assistance program, you'll need to check if it's still compatible with a new loan type.
Check your eligibility for other programs.
Texas has some incredible resources throughTSAHC and the Texas Department of Housing and Community Affairs, but visa status restrictions may still apply.

Explore Down Payment Assistance Options

How the FHA Change Affects You

The FHA change is significant because many first-time buyers—especially those new to the U.S.—rely on FHA’s low cost, easy credit options. This decision could affect thousands of buyers across Texas and the U.S. who are here legally on work visas and actively contributing to our economy.

We don’t yet know if other government-backed loan programs like VA or USDA will follow suit, but if you’re relying on one of those, keep your eye on the news and stay in close contact with your lender.

This isn’t the end of the road if you're on a visa and want to buy a home—but it does mean you'll need to act fast, stay informed, and potentially shift strategies.

Need help finding a new loan option? DM me on Instagram or book a consultation here. BOOK A Call

If this update was helpful, please share it with anyone you know who’s house-hunting on a visa—they need to know ASAP!

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