HUD multifamily MIP: 0.25% for every program since October 2025

The current rate, by program

HUD’s notice of September 23, 2025 (90 FR 45789) set one premium for every FHA multifamily insurance program it lists. The table is HUD’s summary table, in basis points (100 bps = 1%).

“Prior” is the market-rate premium. Before the notice, most deals actually paid less: HUD reported that from March 2024 to March 2025, 96% of 221(d)(4) and 223(f) closings used one of the reduced categories and only 4% paid the market rate.

For risk-share loans, the 0.25% is multiplied by the share of risk FHA carries: 12.5 bps at 50%, 18.75 bps at 75%, 22.5 bps at 90%.

Section 232 is not in the table. Nursing homes and assisted living are insured by HUD’s Office of Healthcare Programs, and the notice lists multifamily housing sections only. Do not assume 232 pays 0.25%; check with that office.

Which loans get 0.25%

The rate applies to any application submitted or amended on or after October 1, 2025, as long as the loan had not been initially endorsed. That second clause matters: a deal already in process under an older application could reach the new rate by amending its application before closing.

What it does not do:

• Endorsed loans keep their rate. HUD considered retroactive cuts and declined, saying the insurance fund relies on the premium agreed at closing. The MAP Guide (section 3.1.10) also fixes the MIP in the firm commitment; it cannot change after initial endorsement.
• It is the floor. The statute allows 0.25% to 1.0% a year (12 U.S.C. 1709(c)(1)), so there is no lower rate to wait for without new legislation.

How an owner on an older premium gets to 25 bps

A loan endorsed under the 2016 rules typically pays 0.60% (market-rate 223(f)), 0.65% (market-rate 221(d)(4)), or 0.35% (affordable). A 223(a)(7) streamlined refinance is a new FHA application, so it is priced at 0.25% upfront and 0.25% a year. It can also lower the note rate if market rates allow and extend the term by up to 12 years. It cannot take cash out. The MIP savings calculator runs the math on a specific loan.

How the premium is collected

Refinance and acquisition (223(f), 223(a)(7)). The upfront premium equals the first year’s annual MIP and is capitalized at initial endorsement. Annual MIP is then paid monthly with debt service.

New construction and substantial rehabilitation with insurance of advances (221(d)(4), 220, 231). The upfront premium is the annual rate times the number of construction years, rounded up to the next whole year. Example: a 20-month construction period on a hypothetical $40,000,000 221(d)(4) rounds up to two years, so the capitalized MIP at initial endorsement is 2 x 0.25% x $40,000,000 = $200,000. MIP collected between initial and final endorsement is reconciled at final endorsement.

Debt service coverage includes MIP. HUD’s coverage test counts principal, interest and MIP, so the cut raised loan proceeds on deals sized by coverage, not only lowered the cost.

Green MIP is gone

From 2016 to September 2025, a property with a qualifying green building certification and annual energy benchmarking paid 0.25% under the Green and Energy Efficient category. The 2025 notice eliminated it along with the Affordable and Broadly Affordable categories. It went further for loans already closed under Green MIP: the initial green certification evidence, the annual energy performance reporting and the green regulatory rider “are fully eliminated and are no longer of force and effect.” Those loans keep their 0.25% rate without the reporting.

The notice also dropped the 5% loan-fee limits that applied to Green and Broadly Affordable deals; standard MAP Guide fee rules now apply. MAP Guide chapter 6 still describes the Green MIP, but that part is superseded.

MIP history, dated

Annual MIP in basis points; upfront in parentheses where it differs. Each row cites the Federal Register notice that set or carried the rates.

The 2012 and 2016 notices applied to firm commitments issued on or after their effective dates (the FY2013 notice exempted applications submitted before June 1, 2012); the 2025 notice applies by application date. Under the 2016 notice, Broadly Affordable meant 90% or more of units under LIHTC or Section 8, Affordable meant inclusionary zoning or 10% to 90% LIHTC or Section 8, and Green required a qualifying certification plus energy benchmarking. Section 223(d) operating loss loans were last priced at 80 bps in FY2012 and shown as not offered from FY2013; they do not appear in the 2016 or 2025 tables.

Why a loan’s vintage matters now

Because endorsed loans keep their premium, two otherwise identical properties can carry very different insurance costs depending on when their commitment was issued and which category they qualified for. Before modeling a refinance, find the premium in the loan’s firm commitment or regulatory documents rather than assuming the market rate for its year: a 2019 223(f) could be paying 0.60%, 0.35% or 0.25%. Then run the difference through the MIP savings calculator.