The Federal Housing Administration (FHA) is increasing the threshold for large loans from $75 Million to $120 Million.
This is the first increase in the threshold since 2014 and will facilitate additional underwriting flexibility for lenders like AGM when submitting FHA Multifamily insurance applications. FHA may increase it each year in $5 million increments. The changes are designed to simplify underwriting for multifamily housing development.
Why is this good news for developers?
FHA’s standard underwriting – 1.176 DSC and 85% LTV – is now available on loans up to $120 million. With higher leverage, fixed rates, longer terms, and all nonrecourse now available for larger loans, FHA financing is even more attractive.
If you have any questions or want to discuss how we can help with project needs, please reach out to us.