The U.S. Department of Housing and Urban Development (HUD) recently announced a major rule change that will affect many people looking to buy a home. Starting May 25, undocumented immigrants will no longer be able to get home loans backed by the Federal Housing Administration (FHA).
FHA loans are a popular choice for first-time homebuyers and people with lower incomes because they usually have lower down payment requirements and more flexible rules. These loans are also available to some people who are not U.S. citizens, including those in the DACA program (Deferred Action for Childhood Arrivals), if they have a valid Social Security number and can show they are allowed to work in the U.S.
But now, under the new policy, even these individuals may lose access to these helpful home loans. HUD says the rule is meant to make sure federal money only supports legal residents of the country.
Real Estate Agent Feels the Impact
For real estate agent Sam Brown Perez, the news came as a disappointment. She has worked in the real estate world for over six years and often helps immigrant families find their first home.
“This new rule hits me hard,” she said. “A lot of the immigrant clients I’ve worked with use FHA loans because they’re easier to qualify for. Without them, it’s going to be a lot tougher.”
Still, she’s staying hopeful. Brown Perez believes that even though FHA loans won’t be available to everyone, homeownership is still possible for immigrants willing to explore other loan options and get informed about the process.
Educating the Immigrant Community
Brown Perez, who used to teach Spanish at a high school, believes that education is the most important step to becoming a homeowner. She often creates videos to explain how the homebuying process works and recently posted a video about the changes to FHA loans.
She said, “I work with many first-time home buyers in the immigrant community. My goal is to help people understand the process and start building wealth through real estate.”
Along with the National Association of Hispanic Real Estate Professionals, she helped organize an event in Tampa, Florida, to explain the new HUD rules to the immigrant community. They shared important details and answered questions so families could better understand what to expect.
Other Loan Options Still Exist
Even though FHA loans are no longer an option for undocumented immigrants, there are still other ways to get a home loan. Brown Perez says there are conventional loans, GM loans, and other programs that immigrants might qualify for — though these loans often have stricter requirements like higher credit scores, larger down payments, or more proof of income.
“These options are a little harder to get,” she explained, “but they’re not impossible. It just takes more work and planning.”
She plans to continue making videos and offering educational sessions to help immigrants find the best path forward. Her message is clear: Don’t give up. There is still hope.
Government’s Reason Behind the New Rule
HUD Secretary Scott Turner said that the rule was created to protect the idea of the “American Dream.” He explained that U.S. taxpayers should not be helping people who came into the country illegally to buy homes.
“HUD is acting to protect the American dream of homeownership,” Turner said. “American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”
While some people agree with this decision, others, like Brown Perez, are worried about how it will affect immigrant families who are trying to build better lives for themselves in the U.S.
Final Thoughts
This new rule will make it harder for undocumented immigrants to buy homes through FHA loans. But it doesn’t mean the dream of owning a home is gone. With the right knowledge, support, and resources, many families can still find ways to become homeowners.
Real estate professionals like Sam Brown Perez are working hard to make sure the immigrant community stays informed and doesn’t lose hope. As she continues to teach and guide first-time buyers, she hopes to help many more families open the door to their forever homes.
