Great news for multifamily developments! This week, HUD issued a notice modifying and finalizing the Mortgage Insurance Premium (MIP) changes that were proposed in June. “Through this notice, HUD expands the MIP cost-saving benefits to all property types to immediately lower financing costs and stimulate rental housing development.”
Looking ahead, all FHA multifamily loans will have the reduced 0.25% MIP. This is effective for loans that have not yet received initial endorsement, with applications submitted or amended on or after October 1, 2025.
Effective immediately, the 2016 MIP categories of Green and Energy Efficient Housing, Affordable Housing, and Broadly Affordable Housing have been eliminated. Additionally, all green-related requirements for loans previously closed are fully eliminated.
The Sherbert Group can provide guidance/recommendations if you are considering HUD financing for your project!