Housing (Mortgages)

The No Federal Taxpayer-Funded Housing for Illegal Aliens Act of 2026 prohibits the use of federal funds to provide housing assistance to individuals who are unlawfully present in the United States. The bill defines covered housing assistance broadly to include rental help, vouchers, mortgage support, utility bills, hotel stays, and various stabilization services aimed at securing or maintaining a home. Federal agency heads must enforce this ban by requiring fund recipients to certify compliance, monitoring their activities, and imposing civil penalties or periods of ineligibility for any violations. The prohibition does not apply to funds used specifically for enforcing immigration or criminal laws.

The Homeownership Eligibility Reform Act restricts access to government-backed and private mortgage insurance for single-family homes to individuals who are U.S. citizens. Specifically, the bill amends laws governing the Federal Housing Administration, Fannie Mae, and Freddie Mac to require that borrowers for one-to-four-unit properties must be citizens to qualify for their mortgage products. This change directly affects foreign nationals and non-citizen residents who currently might purchase homes with these types of financing, effectively limiting their eligibility for these specific mortgage programs.

The Sustainable Homeownership Act modifies the rules for Freddie Mac and Fannie Mae to limit their purchase of high-risk mortgages while introducing stricter insurance requirements for loans with high loan-to-value ratios. It mandates that private insurers guarantee specific portions of unpaid mortgage balances, with higher coverage percentages required for riskier loans, though it includes exceptions for refinancing, state programs, and low-income borrowers. The bill also establishes new financial oversight measures, such as setting a return on equity range between 9 and 13 percent and requiring enterprises to remit excess earnings to the Treasury if they exceed that range. Additionally, the legislation outlines a plan to eventually convert the government-sponsored enterprises' preferred stock into common equity and prepare for their exit from federal conservatorship.

HR 1814, the *Restoring the VA Home Loan Program in Perpetuity Act of 2025*, limits the Department of Veterans Affairs (VA) to purchasing no more than 250 home loans annually under its Servicer Purchaser Program. This directly affects veterans seeking VA-backed mortgages, as it caps the program’s scale by restricting the VA’s ability to acquire loans. The bill’s key provision establishes this annual 250-loan limit for VA purchases, while also requiring a study on selling loans acquired after May 31, 2024. It does not change eligibility for veterans but alters how the VA manages loan acquisitions.