FHA Mortgagee Letter Increases Threshold for Large Loans to $120 Million

Wednesday, June 28, 2023 - 2:00PM

The Federal Housing Administration (FHA) today published a mortgagee letter increasing the threshold for large loans to $120 million and announcing it can review the threshold on an annual basis. Mortgagee Letter 2023-14 increases the threshold for a large loan from the $75 million level at which it has been since 2014. The change will allow a greater number of transactions to use standard underwriting processes while seeking FHA multifamily insurance. Under FHA regulations, large loans have additional requirements. The FHA will also now be allowed to increase the threshold in annual increments of up to $5 million if warranted, based on inflation.

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