New rules from the Federal Housing Administration are raising concerns among housing advocates who say the changes could hinder homeownership for many immigrant communities.
Starting May 25, the FHA will eliminate its "non-permanent residents" category from its Title I and Title II programs. According to the Department of Housing and Urban Development, the updated policy will affect individuals with pending asylum cases, refugee status applicants, and recipients of the Deferred Action for Childhood Arrivals (DACA) program.
Tracy Vertus, a representative of the Haitian Real Estate Professionals Association, said the change will likely create financial barriers for many residents.
“It does create a setback in some of our communities,” Vertus said. “I think that it would delay or even limit the ability for some residents to pursue homeownership and to be active contributors to their local economy.”
FHA-backed loans are often favored by first-time homebuyers because they require smaller down payments compared to conventional mortgages
“This opportunity to only use 3.5% toward your down payment for your first home—it does affect our community,” Vertus said. “It is creating a gap. It was already a challenge for some to come up with the 3.5%, so for sure, this is going to have an impact on our community and our local economies.”
Florida is home to the largest Haitian population in the United States. The Haitian Real Estate Professionals Association was founded in 2023 to help residents navigate the housing market.
“We started this organization because of the challenges and barriers we noticed in our community,” Vertus said. “People not understanding real estate contracts, and also the different programs available—people just not being aware what was available. So, with the recent changes that took place, we saw it as a setback.”
Real estate professionals are advising those affected to act quickly before the May 25 deadline. After that date, non-permanent residents will need to seek alternative financing, which often comes with higher interest rates and less favorable terms. Still, Vertus said she remains hopeful.
“We also see this as an opportunity to think creatively,” she said. “We know that we've weathered other storms in the real estate industry, and this is just another one we have to get through.”
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