Bulletin 2025-019 USDA Borrower Citizenship Eligibility Update
Newrez LLC "Newrez" Approved Correspondent Clients: USDA is terminating the temporary authority originally communicated in April 2022 that allowed some non-U.S. Citizens with valid social security numbers and work authorization to be eligible to apply for a guaranteed loan.
Effective March 18, 2025, the temporary authority is no longer valid. Borrower(s) obtaining USDA financing must meet one of the following residency status’:
- Be a U.S. Citizen; or
- Be a Permanent Resident Alien; or
- Have a current Employment Authorization Documentation (EAD) with one of the following categories:
- A03 Refugee (approved)
- A04 Paroled as Refugee
- A05 Asylee (granted)
- A10 Granted withholding of Deportation or Removal
- C11 An alien paroled into the United States in the public interest or temporarily for emergency reasons
Note: The Permanent Resident Alien Card and the Employment Authorization Documentation may not be expired at the time of closing.
Updates to the Rural Development guidelines will be forthcoming.
USDA has posted a Job Aid to help assist in determining eligibility.
Pipeline Impact
- Applications with a conditional commitment as of March 17, 2025, may proceed.
- Applications without a conditional commitment prior to March 18, 2025, that do not meet the above residency requirements are ineligible for purchase by Newrez.
Refinance Transactions
Refinance transactions, including Streamlined-Assist, the non-U.S. citizen rules that applied when the original loan was closed will carry forward to the refinance. Loans that already have a guaranteed loan will be able to refinance. If new borrowers are added to the loan, they must meet the eligibility requirements effective March 18, 2025.