Homeownership Eligibility Reform Act
- Sponsor
- Rep. Gill, Brandon [R-TX-26]
- Committees
- Financial Services Committee (primary)
- Last action
- Jun 29, 2026
Bottom line
The bill aims to limit federal housing support and government-backed mortgage access exclusively to U.S. citizens, potentially creating significant barriers to homeownership for non-citizen residents.
What it actually does
This bill amends existing federal housing law to restrict eligibility for mortgage insurance provided by the Federal Housing Administration (FHA) and for mortgages purchased and securitized by Fannie Mae and Freddie Mac to U.S. citizens only. Currently, these programs are accessible to legal permanent residents and other qualified non-citizens.
Proponents argue
Proponents would argue that federal housing programs, which are backed by U.S. taxpayers, should prioritize and exclusively benefit U.S. citizens. They might contend that this measure ensures national resources are directed to the citizenry, potentially making homeownership more accessible for citizens by reducing competition from non-citizens.
Opponents contend
Opponents would argue that the bill discriminates against legal residents who contribute to the U.S. economy and tax base, unfairly limiting their access to crucial homeownership pathways. They might also contend that it could exacerbate housing affordability issues for non-citizens and lead to broader negative economic impacts by reducing the overall pool of eligible homebuyers.
The bill is very short and straightforward, making it highly accessible for a quick review.
Section 2, amending Section 203(b)(8) of the National Housing Act (12 U.S.C. 1709(b)(8))
Restriction of FHA Mortgage Insurance to U.S. Citizens
This provision amends current law to mandate that Federal Housing Administration (FHA) mortgage insurance can only be provided for mortgages executed by a mortgagor who is a citizen of the United States. This changes the existing policy which allows legal permanent residents and other qualified non-citizens to be eligible for FHA-insured mortgages.
Supporters argue
Supporters would argue that FHA mortgage insurance, a federal program backed by taxpayers, should exclusively benefit U.S. citizens, aligning with national priorities and ensuring resources are directed to the citizenry.
Critics contend
Critics would contend that this restriction unfairly targets legal residents who contribute to the tax base and economy, limiting their access to a crucial homeownership pathway and potentially increasing housing instability for these groups.
Tradeoffs
This provision balances the principle of prioritizing citizens for federal benefits against concerns of discrimination and potential negative impacts on housing markets and economic integration for legal non-citizens.
Section 3(a) and 3(b), amending Section 302 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717) and Section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454)
Restriction on GSE Purchase/Securitization of Mortgages to U.S. Citizens
This provision prohibits Fannie Mae and Freddie Mac (Government-Sponsored Enterprises or GSEs) from purchasing or securitizing conventional mortgages secured by one- to four-family dwelling units if the mortgagor is not a U.S. citizen. This effectively limits the secondary mortgage market for non-citizens, as lenders would be less willing to originate loans that cannot be sold to the GSEs.