On June 26, 2025, the Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs published a Federal Register notice that reduces Multifamily Mortgage Insurance Premiums (MIPs) to 0.25% across all FHA Multifamily programs.
History of HUD MIP reductions
On March 31, 2016, HUD published a notice reducing MIPs for qualifying loans under three newly established MIP rate categories: Green and Energy Efficient Housing, Affordable Housing, and Broadly Affordable Housing. On January 20, 2025, President Trump signed a presidential memorandum “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis,” and an executive order on Unleashing American Energy. The June 26, 2025, notice expands upon the goals in the presidential memorandum and executive order.
Changes to Multifamily Mortgage Insurance Premiums (MIPs)
The notice proposes to:
- Realign all MIPs to 25 basis points for all Multifamily programs.
- Concurrently eliminate the Green and Energy Efficient, Affordable Housing, and Broadly Affordable Housing MIP categories established in 2016.
- Eliminate the requirements to evidence the initial green building achievement and the annual reporting of energy performance for all loans closed under a Green MIP rate.
- The proposed changes to HUD MIPs by program are shown in the table below.
| FHA Multifamily Mortgage Insurance Program | Current Upfront Capitalized MIP (basis points) | Proposed Upfront Capitalized MIP (basis points) | Current Annual MIP (basis points) | Proposed Annual MIP (basis points) |
| Section of National Housing Act | ||||
| 2007 Multifamily New Constr/Sub Rehab w/o LIHTC | 70 | 25 | 70 | 25 |
| 2007 Manufactured Home Parks w/o LIHTC | 70 | 25 | 70 | 25 |
| 221(d)(4) New Constr/Sub Rehab w/o LIHTC | 65 | 25 | 65 | 25 |
| 220 Urban Renewal Housing w/o LIHTC | 70 | 25 | 70 | 25 |
| 2013 Cooperative | 70 | 25 | 70 | 25 |
| 207/223(f) Refi or Purchase for Apts. w/o LIHTC | 100 | 25 | 60 | 25 |
| 223(a)(7) Refi of Apts w/o LIHTC | 50 | 25 | 50 | 25 |
| 231 Elderly Housing w/o LIHTC | 70 | 25 | 70 | 24 |
| 241(a) Supplemental Loans for Apts. coop w/o LIHTC | 95 | 25 | 95 | 25 |
| Section 542(b) Risk-Sharing | 25 | 25 | 25 | 25 |
| Section 542(c) Risk-Sharing | 25 | 25 | 25 | 25 |
| Broadly Affordable Housing | ||||
| All Sections of National Housing Act | 25 | Eliminated | 25 | Eliminated |
| Affordable, Inclusionary Vouchers | ||||
| All Sections of National Housing Act | 35 | Eliminated | 35 | Eliminated |
| Green/Energy Efficient Housing | ||||
| All Sections of National Housing Act | 25 | Eliminated | 25 | Eliminated |
Opportunities for owners and developers
Our Affordable Housing Team will continue to track the development and implementation of these proposed changes. We are available to advise how our clients can navigate these changes and maximize value on future FHA transactions.