May 21, 2019

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Is U.S. Citizenship Required For An FHA One-Time Close Construction Loan?

Is U.S. Citizenship Required For An FHA One-Time Close Construction Loan?

Is United States citizenship required for an FHA One-Time Close / Single-Close construction loan? This issue does not affect all potential FHA borrowers, but it’s a very important one to address, especially given controversy in the news over a variety of societal concerns.

Before we get to the specifics of whether or not citizenship is required for an FHA One-Time Close / Single-Close mortgage or ANY type of FHA home loan, refinance loan, or FHA reverse mortgage, it must be noted that FHA home loans are approved on the basis of a borrower’s ability to financially qualify and afford the mortgage.

The borrower must be able to legally commit to binding agreements including the loan contract itself, and be of sufficient legal age in the state the transaction is to be carried out in.

At least one borrower obligated on the mortgage loan must take up residence in the home secured by the FHA loan as his or her primary residence/principal residence.

FHA loan rules in HUD 4000.1 break down certain circumstances a borrower may fit into and defines the eligibility of a potential borrower in such cases related to the citizenship question. We will address these issues in a similar manner.

FHA Loan Citizenship Rules For Loan Approval

At the most basic level, FHA loan rules specifically and unequivocally state:

“U.S. citizenship is not required for Mortgage eligibility.”

This rule is found in HUD 4000.1 on page 133. This is good news for those who are in the United States as legal permanent or non-permanent “resident aliens” as described in the FHA loan rulebook.

FHA Loan Rules For Legal Permanent Resident Aliens

HUD 4000.1 states clearly, “A Borrower with lawful permanent resident alien status may be eligible for FHA-insured financing provided the Borrower satisfies the same requirements, terms and conditions as those for U.S. citizens.” The lender will be required to obtain certain documentation to verify this status.

FHA Loan Rules For Legal Non-Permanent Resident Aliens

HUD 4000.1 states, “A Borrower who is a non-permanent resident alien may be eligible for FHA-insured financing provided:

  • the Property will be the Borrower’s Principal Residence;
  • the Borrower has a valid SSN, except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD;
  • the Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Document issued by the USCIS; and
  • the Borrower satisfies the same requirements, terms and conditions as
    those for U.S. citizens.

FHA Loan Rules For Non-U.S. Citizens Without Legal Residency In The United States

HUD 4000.1 states, “Non-U.S. citizens without lawful residency in the U.S. are not eligible for FHA-insured Mortgages.”

Learn More About FHA One-Time Close / Single-Close Construction Mortgages

We have done extensive research on One-Time Close / Single-Close mortgages and spoke directly to the licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the product well.

Each company has supplied us the guidelines for their product. If you are interested in being contacted by one licensed lender in your area, please respond to the below questions to save time. All information is treated confidentially.

Your response to authorizes us to share your personal information with a licensed mortgage lender in your area to contact you.

Please note that the One-Time Close / Single-Close Construction Loan Program only allows for single family dwellings (1 unit) – and NOT for multifamily units (no duplexes, triplexes or fourplexes).

1. Send your first and last name, e-mail address, and contact telephone number.

2. Tell us the city and state of the proposed property.

3. Tell us your credit score and/or the Co-borrower’s credit score, if known. 620 is the minimum qualifying credit score for this product.

4. Are you or your spouse (Co-borrower) eligible veterans?  If either of you are eligible veteran’s, the down payment is $0 up to the maximum VA lending limit for your county. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.


Bruce Reichstein - Staff Writer

By Bruce Reichstein

May 22, 2018

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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