FHA issued Mortgagee Letter (ML) 2025-09 and Title I Letter (TIL) TIL-490 removing loan eligibility for non-permanent residents. Per the ML and TIL, FHA eliminated in the entirety the “Non-permanent Residents” category for both the Single Family Title I and Title II programs from the Single Family Housing Policy Handbook (SF Handbook 4000.1). The provisions of the ML and TIL must be implemented for FHA case numbers assigned on or after May 25, 2025 (lenders may, however, implement the provisions immediately).
Click to view the FHA Mortgagee Letter 2025-09: https://www.tenaco.com/wp-content/uploads/2025/03/FHA-Mortgagee-Letter-2025-09-03-26-25.pdf
Click to view the FHA Title I Letter 490: https://www.tenaco.com/wp-content/uploads/2025/03/FHA-Title-I-Letter-490-03-26-25.pdf
