Sign Up For Novogradac Industry Alert Emails

FHA to Reduce Insurance Rates for Multifamily Mortgages

Thursday, January 28, 2016 - 1:30PM

U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro today announced the Federal Housing Administration (FHA) will reduce multifamily mortgage insurance rates to encourage capital financing of affordable and energy-efficient housing. The reduced rates will be 25 basis points for broadly affordable housing, defined as properties with 90 percent of the units assisted by the low-income housing tax credit (LIHTC) or Section 8; 35 basis points for mixed-income properties; and 25 basis points for energy-efficient properties that meet certain performance standards. The reduced rates take effect April 1. FHA estimates the reductions will spur an additional 12,000 units of affordable housing to be rehabilitated each year, benefitting nearly 40,000 families over the next three years.

FHA will also reduce certain upfront multifamily mortgage insurance premiums for FHA commitments issued or reissued beginning April 1.

Tune in to the Feb. 2 Tax Credit Tuesday podcast to learn more.

Learn more about Novogradac's expertise and many services