Last month, we shared that Congress was expected to approve the 21st Century ROAD to Housing Act. As of this weekend, it’s official.
For multifamily developers, this is welcome news.
The new law significantly increases FHA loan limits, helping restore the leverage that many projects have lost as construction costs have outpaced lending thresholds. In many markets, developers who previously found FHA financing constrained may now qualify for larger loans.
Here’s what changed:
- FHA loan limits have increased by approximately 2.4 times the previous base amounts.
- Future increases will be tied to multifamily construction costs, rather than the Consumer Price Index, keeping loan limits in line with development costs.
- Higher-cost markets will continue to qualify for additional project-specific increases where appropriate.
FHA-insured financing has long been valued for its long-term, fixed-rate, non-recourse structure and higher leverage. With new higher loan limits now in effect, more multifamily projects than ever can benefit from an FHA-insured loan.
If you have questions about how these changes could impact your project, we’re happy to assist you. With our industry experts and decades of experience on your side, you don’t have to go it alone.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM 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. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.