Late yesterday, HUD announced important proposed changes in mortgage insurance premiums (MIP) for FHA-insured multifamily loans.
In a notice to be published in the Federal Register tomorrow (June 26, 2025), HUD is proposing to reduce MIP rates to 0.25% for all multifamily housing programs.
In this notice, HUD also proposes to eliminate the Green and Energy Efficient Housing, Affordable, and Broadly Affordable MIP rate categories. Elimination of these three MIP categories will also eliminate their respective specialized requirements as outlined in the current rules.
For loans closed under the Green and Energy Efficient Housing MIP program, the requirements to evidence the initial green building achievement and the annual reporting of energy performance are fully eliminated.
The proposed MIP rate changes will apply to FHA multifamily mortgage insurance applications submitted or amended on or after the effective date of the notice, so long as the loan has not been initially endorsed.
The proposed changes are subject to a 30-day comment period. HUD hopes to finalize the changes later in the summer.
This is good news. Many in the industry have been advocating for these changes for some time. They will simplify the MIP program, reduce costs, potentially increase loan proceeds, and eliminate burdensome reporting.
If you have questions, please schedule a call with AGM.
About AGM Financial Services
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
