HUD Secretary Announces New Policy Over Federal Housing Administration Approved Mortgages
Well folks, the winds just shifted—and it’s a big one.
In a move that’s already sending shockwaves across the housing and immigration policy landscapes, the Trump administration announced this week that it will halt all taxpayer-backed FHA mortgages for individuals in the country illegally. That’s right—no more federally subsidized home loans for those without legal status. And the message? Crystal clear: If you’re here illegally, you’re not going to get a U.S. taxpayer to foot the bill for your mortgage.
HUD Secretary Scott Turner didn’t tiptoe around it either. He went straight to the point on X: “American taxpayers will no longer subsidize open borders.” That announcement comes hot on the heels of an official HUD notice to FHA-approved lenders, signaling the immediate end to mortgage eligibility for both illegal immigrants and non-permanent residents—including those with pending asylum claims and even DACA recipients.
Today, HUD terminated Biden’s taxpayer-backed FHA mortgages for illegal aliens.
American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.
— Scott Turner (@SecretaryTurner) March 26, 2025
Let’s break that down. These FHA loans aren’t just any home loans. They’re low-interest, low-down-payment mortgages—backed by you and me, the American taxpayer. They were designed to help low-income Americans achieve homeownership. But under the previous administration’s policies, those same taxpayer dollars were being used to guarantee mortgages for people with no legal status in the country. That changes now.
And this isn’t just about citizenship. Deputy Assistant Secretary Jeffrey Little laid it out in his letter to lenders: the issue is stability. If someone’s immigration status is in limbo, how can the federal government reasonably expect them to fulfill a 30-year mortgage? It’s about fiscal responsibility, too.
Now, critics will undoubtedly argue that some of these individuals have lived here for years, paid taxes, contributed to communities. Fair point. But HUD isn’t saying they can’t get a mortgage at all—it’s saying they can’t get one backed by the American taxpayer. There’s a difference, and it’s a big one.
This reversal also underscores a broader shift in federal priorities. During the Biden administration, not only were DACA recipients eligible for FHA loans, but other programs—like those run through the Department of Health and Human Services—were quietly pouring billions into services for illegal immigrants.
According to OpenTheBooks, HHS spent over $22.6 billion from 2020 to 2024 on everything from car payments to—you guessed it—home loans. It’s no wonder watchdog groups called those programs “giant magnets” for illegal crossings.
HUD’s policy update slams the brakes on that trend. And it’s likely just the beginning. The Office of Refugee Resettlement, for example, had plans to expand its reach even further—proposing to drop requirements like economic self-sufficiency, and offering broader support to full-time students and refugee children from Ukraine and Afghanistan.