The Federal Housing Administration's share of purchase lending to nonpermanent residents dropped from 5.8% to 0.1% after a HUD residency rule change in May 2025, according to ICE data reported by HousingWire.
The figures point to a substantial contraction in FHA-backed purchase activity among this borrower group following the policy shift. The data compares the period before the rule change with lending activity after it took effect.
FHA financing is a significant part of the United States housing market because it provides government-backed mortgage insurance for qualifying homebuyers. Changes to residency eligibility can therefore quickly alter access to this source of finance for affected purchasers.
For Bulgarian property professionals and internationally mobile buyers, the development is principally a US-market policy signal. It illustrates how residency rules can influence mortgage availability and transaction activity without necessarily indicating a broader change in underlying housing demand.