Hey everyone — I wanted to give you a quick heads-up about a big change coming to the FHA loan program that could affect some current and future homebuyers.
📅 Starting May 25, 2025, the Federal Housing Administration (FHA) will no longer allow non-permanent residents to qualify for FHA-insured mortgages. This applies to all FHA Title I and Title II programs, including reverse mortgages like HECMs (Home Equity Conversion Mortgages).
🧐 Why Is This Important?
This change could impact buyers who don’t have permanent resident status and were planning to use an FHA loan — which is known for low down payment options and flexible credit score requirements.
The good news? Any FHA case number assigned before May 25 will still follow the current guidelines, so there’s a window of time to move forward!
✅ What Are the Options?
No need to panic — there are still plenty of paths forward. Here's what we can do:
1. Move Fast:
If your buyers qualify for an FHA loan now, let’s get their case number assigned before May 25. That locks them into the existing rules.
2. Credit Boost:
If FHA is no longer an option, a small improvement in credit score could make conventional loans more accessible. I’ve got trusted credit repair pros I can refer you to if needed.
3. Alternative Loans:
Some lenders offer non-QM loans, perfect for buyers with unique situations or non-traditional income. Also, don’t forget about state-specific down payment assistance programs — those can be game-changers!
4. Residency Path:
If your client is close to becoming a permanent resident, it might be worth exploring how to speed up that process. Timing could make all the difference.
Let’s make sure no one gets caught off guard. If you or your clients have questions about this change or want to explore your options, I’m here to help.
Need help buying, selling, or renting in New Jersey? Contact GoodBuy Homes NJ Realty today!
📧 Email: goodbuyhomesnj@gmail.com
📞 Call/Text: 973.277.6745
