Announcement 2025-024 FHA Residency Requirements Update
Newrez LLC "Newrez" Approved Correspondent Clients: FHA announced in Mortgagee Letter 2025-09, updates to the residency requirements for FHA transactions effective with casefile assignments on and after May 25, 2025.
FHA is eliminating eligibility for Non-Permanent Resident Borrowers and will update the Handbook to remove the Non-Permanent Residents sections of the Handbook in its entirety.
Newrez requires the completion of the citizenship portion of section 1a on the Uniform Residential Loan Application (URLA), including on FHA non-credit qualifying streamline refinance transactions. Newrez must determine the residency status of the Borrower(s) based on information provided on the mortgage application and other applicable documents.
US Citizens, Permanent Resident Aliens and Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau are the only acceptable residencies permitted with casefiles assigned on and after May 25, 2025.
Link to Mortgagee Letter: https://www.hud.gov/sites/default/files/OCHCO/documents/2025-09hsgml.pdf