Sponsors (16)
The bill aims to simplify mortgage eligibility and favor U.S. citizen borrowers and agency underwriting, but does so by excluding noncitizen borrowers from FHA- and GSE-backed financing—improving access for some citizens while reducing affordability, equity, and financial inclusion for immigrant communities and shifting risks to smaller lenders.
U.S. citizen homebuyers would face reduced competition for one-to-four-family conventional mortgages, improving their chances of obtaining GSE-backed loans and potentially lowering borrowing costs.
U.S. citizens applying for FHA-insured mortgages would have clearer eligibility rules, simplifying application determinations and potentially speeding decisions for those borrowers.
Federal mortgage enterprises and programs (Fannie Mae, Freddie Mac, FHA) may have simpler underwriting/purchase criteria by adding a citizen eligibility criterion, reducing administrative complexity for those agencies.
Noncitizen borrowers (including lawful permanent residents and other eligible immigrants) would be excluded from FHA- and GSE-backed mortgages, sharply reducing their access to affordable, government-supported home financing.
Communities with many noncitizen households could see reduced mortgage availability, higher borrowing costs, and lower homeownership rates, worsening local housing affordability and slowing housing market activity.
Excluding noncitizens from GSE- and FHA-backed loans would deepen racial and ethnic homeownership and wealth gaps, reducing financial inclusion and long-term wealth-building opportunities for immigrant communities.
Based on analysis of 3 sections of legislative text.
Requires U.S. citizenship for mortgagors on specified FHA-insured loans and for conventional 1–4 family mortgages purchased by Fannie Mae and Freddie Mac.
Requires that certain federally insured or purchased home loans be made only to mortgagors who are U.S. citizens. It amends the National Housing Act and the statutes governing Fannie Mae and Freddie Mac so that insured mortgages under the referenced FHA provision and conventional 1–4 family mortgages purchased by the enterprises must have a mortgagor who is a U.S. citizen. The change removes noncitizens (including lawful permanent residents and other eligible noncitizen borrowers) from eligibility under the amended FHA subsection and from the pool of loans the two government-sponsored enterprises (GSEs) may purchase or commit to purchase for single-family 1–4 unit mortgages.
Official title: To restrict the eligibility of mortgagors to citizens of the United States with respect to mortgage insurance provided by the Federal Housing Administration and the purchase and securitization of mortgages by Fannie Mae and Freddie Mac.
Introduced June 29, 2026 by Brandon Gill · Last progress June 29, 2026