HUD Sec. Scott Turner reveals damage done to FHA by Biden administration

HUD Secretary Scott Turner announced a major policy shift confirming that the previous administration had allowed certain non-citizens to access taxpayer-backed mortgages through the Federal Housing Administration.

Turner stated that the FHA’s prior guidelines were intentionally broad, permitting individuals with temporary legal status, such as DACA recipients and those with valid work authorizations, to qualify for government-insured loans.

He framed the previous interpretation of residency requirements as an misuse of federal resources that favored non-permanent residents over American citizens and lawful permanent residents. To address these concerns, Turner issued a formal update to the FHA Handbook on March 26, 2025, which explicitly restricted mortgage eligibility to U.S. citizens and green card holders.

This reversal was part of a broader Trump administration initiative to prioritize domestic housing resources for citizens. Turner argued that providing long-term, federally insured financial products to those without permanent legal status created unnecessary risks for the taxpayer, given the uncertainty of their future residency in the country.

The move has significantly impacted non-permanent residents, including those on high-skilled work visas like the H-1B, who had previously been able to secure FHA loans with a valid Social Security number and employment history. While supporters of the change view it as a necessary step to protect the integrity of HUD programs, critics argue it punishes legal workers who contribute to the economy.

Turner has remained firm on the policy, initiating additional audits and coordination with the Department of Homeland Security to ensure that no federal housing benefits are distributed to those without permanent legal standing in the United States.