Sponsors (15)
The bill trades clearer, narrower eligibility and simpler underwriting for federal mortgage programs (benefiting U.S. citizen borrowers and agencies) against substantially reduced access to affordable mortgage finance for noncitizen households, with likely harms to immigrant homeownership, equity-building, local housing markets, and civil-rights exposure.
Federal mortgage programs and enterprises (FHA, Fannie Mae, Freddie Mac) would have a clearer citizen-based eligibility rule, simplifying underwriting and purchase decisions and reducing administrative ambiguity for mortgage purchasers and servicers.
U.S. citizen homebuyers could face reduced competition for one-to-four-family conventional mortgages, potentially making it modestly easier for some citizen buyers to obtain financing.
Clearer FHA eligibility criteria may streamline application determinations for citizens seeking FHA-insured loans, reducing processing uncertainty for those borrowers.
Noncitizen borrowers (including lawful permanent residents and other eligible immigrants) would be excluded from FHA-insured loans and from conventional mortgages sold to Fannie Mae/Freddie Mac, sharply limiting their access to lower-cost, widely available mortgage financing.
The exclusion of noncitizen buyers would reduce homeownership rates and slow housing market activity in communities with many immigrant households, worsening local housing availability and affordability.
The policy would worsen financial inclusion and wealth-building gaps for immigrant and racial/ethnic minority households by blocking common pathways to home equity and intergenerational wealth.
Based on analysis of 3 sections of legislative text.
Requires mortgagors to be U.S. citizens for certain insured mortgages and bars Fannie Mae and Freddie Mac from buying conventional 1–4 family mortgages if the mortgagor is not a U.S. citizen.
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
Revises federal mortgage rules to require that mortgagors be U.S. citizens for certain government-insured mortgages and for mortgages purchased by Fannie Mae and Freddie Mac. The bill replaces the previous eligibility language in the National Housing Act and adds citizenship as a mandatory condition for purchase or commitment to purchase conventional 1–4 family mortgages by the two housing enterprises. The change narrows who can obtain or have loans guaranteed or bought by these federal programs, affecting noncitizen borrowers, secondary mortgage market activity, and institutions that pool or buy conventional single-family mortgages.