Washington, Oct 10, 2026 00:12 ISTThe US government has reported that taxpayer-backed home loans for non-permanent residents have plummeted to practically zero, more than a year after administrative updates excluded them from a major housing initiative. Housing and Urban Development Secretary Scott Turner pointed to the adjustment on Friday, framing the regulation as a measure designed to safeguard domestic homebuyers.
Turner underscored the milestone by releasing a video message alongside a remark questioning the longevity of foreign-driven housing activity in local markets. In an official statement, Turner emphasized that the administration is successfully barring non-citizens and non-residents from utilizing state-backed programs at the detriment of local purchasers, asserting that the current participation share sits at zero.
Immigration has emerged as a central flashpoint in midterm campaigning across Texas, where the Republican incumbent base faces significant competition from Democratic challengers. Political analysts anticipate a highly competitive race within the state, prompting high-profile visits from President Donald Trump and Vice President J D Vance to rally voter support.
Texas hosts a population exceeding 500,000 South Asians, a substantial portion of whom trace their heritage to India. The shifting demographic and economic landscape has prompted sharp rhetoric from certain hardline conservative factions regarding the influx of foreign professionals.
In May of the preceding year, the Department of Housing and Urban Development updated its guidelines to prohibit non-permanent residents, encompassing individuals holding H1-B specialty occupation visas, from obtaining Federal Housing Administration-backed mortgages targeted at first-time buyers. Industry figures from ICE data provided to HousingWire indicate that prior to this implementation, non-permanent residents accounted for roughly 5.8 percent of FHA purchase originations and 5.6 percent of total purchase mortgages across the broader market.
Following the regulatory adjustment, participation among non-permanent residents in FHA purchase loans contracted sharply to roughly 0.1 percent. Simultaneously, their proportion of total purchase mortgages across all financing categories declined by 2.2 percentage points, settling at 3.4 percent.
Turner credited the development to the administration's ongoing commitment to prioritize domestic citizens. Promotional material circulated by Turner highlighted local housing statistics, citing a year-on-year drop in home values within Collin County, Texas, and attributing price corrections partly to broader federal actions affecting technology sector employment and visa programs. Administration officials maintain that the suppression of government-backed lending for non-permanent residents aligns directly with broader national strategies addressing immigration and housing affordability.