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Navigating the FHA’s New Residency Requirements: What Houston Suburb Homebuyers Need to Know

Hello, future homeowners of Katy, Sugar Land, The Woodlands, Cypress, Richmond, Spring, Tomball, Fulshear, and beyond! If you’re dreaming of settling into a new house or home in one of Houston’s charming suburbs this summer, there’s a crucial update you need to be aware of. Let’s dive into the latest FHA policy change and how it might impact your home-buying journey.

The FHA’s New Policy: What’s Changing?

The Federal Housing Administration (FHA) has recently issued Mortgagee Letter 2025-09, which brings significant changes to residency requirements for borrowers. Effective for FHA case numbers assigned on or after May 25, 2025, non-permanent resident borrowers will no longer be eligible for FHA-insured loans.

What Does This Mean for Homebuyers in Houston’s Suburbs?

If you’re a non-permanent resident planning to purchase a home in areas like Katy, Sugar Land, The Woodlands, or Cypress, this policy change could affect your financing options. Previously, FHA loans were accessible to non-permanent residents who met specific criteria. However, with the new policy, only U.S. citizens and lawful permanent residents are eligible for FHA-insured financing.

How Can You Prepare?

  1. Assess Your Residency Status: Determine whether you hold permanent residency. If you’re a non-permanent resident aiming to buy a home, consider exploring alternative financing options.
  2. Explore Alternative Loan Options: Conventional loans, VA loans (for eligible veterans), and other mortgage products may have different eligibility requirements. It’s essential to research and identify which loan types align with your residency status and financial situation.
  3. Consult with a Knowledgeable Mortgage Broker: Navigating these changes can be complex, but you don’t have to do it alone. As a seasoned mortgage broker servicing Katy, Texas, and the surrounding areas, I’m here to help you understand your options and guide you through the financing process.

Final Thoughts

While policy changes like these can seem daunting, being informed and proactive is key. Whether you’re eyeing a cozy house in Richmond or a spacious home in Fulshear, understanding your financing options will make your home-buying journey smoother.

Ready to explore your mortgage options in light of these changes? Click HERE, and let’s chart the best path to your new home in Houston’s vibrant suburbs!

With over a decade of experience in mortgage financing, Kory Small has been writing articles since opening his mortgage brokerage in January 2021. Originally from Louisiana, Kory has called Houston home for 24 years and serves Houston and the surrounding areas. With a knack for simplifying difficult concepts, Kory focuses on making the mortgage process simple and efficient. Known for clear communication and top-tier service, he works closely with clients and real estate agents to ensure smooth transactions – whether FHA, VA, Conventional, USDA, Jumbo, Non-QM loans (bank statements, DSCR, asset-based, fix-and-flip) or multiple down payment assistance programs across Texas. Outside of the mortgage world, Kory enjoys cooking using his original seasoning blends, producing music, and spending time with family.

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