FHA lending to nonpermanent residents has dropped in the wake of HUD’s rule change
ICE data shows the FHA purchase share for this group fell from 5.8% to 0.1% after a rule change in May 2025
The recent decline in FHA lending to nonpermanent residents is a significant development in the real estate industry, particularly for those involved in the painting and renovation sector. With fewer nonpermanent residents purchasing homes through FHA loans, there may be a decrease in demand for painting services and other home renovations. This could have a ripple effect on local paint suppliers and contractors who rely on a steady stream of new homeowners to drive business.
The rule change implemented by HUD in May 2025 has clearly had a profound impact on FHA lending to nonpermanent residents, with the purchase share plummeting from 5.8% to 0.1%. This drastic reduction suggests that the new rules have effectively limited access to FHA loans for this group, which could have long-term implications for the housing market and related industries like painting. As the industry adapts to this new reality, paint suppliers and contractors may need to explore alternative markets or strategies to maintain their customer base.
As the situation continues to unfold, it will be important to watch for any potential revisions to the HUD rule or changes in lending practices that could affect nonpermanent residents. Additionally, industry professionals should monitor shifts in demand for painting services and adjust their business plans accordingly. The painting industry's response to these changes will be crucial in determining how well it weathers the impact of reduced FHA lending to nonpermanent residents.
Originally reported by housingwire.com. PaintNews adds analysis for real estate & property readers.