Calculator
HUD vs agency loan cost calculator
Compares the all-in annual cost and cash flow of a HUD loan (your note rate plus 0.25% MIP, amortized over up to 35 years) with a Fannie Mae, Freddie Mac or bank loan you have been quoted, over the years you plan to hold.
First-year debt service
Enter the agency rateThe HUD side is filled in from your inputs; add the other quote to compare.
| HUD | Agency | |
|---|---|---|
| All-in rate (note + MIP) | 5.65% | n/a |
| Monthly payment | $137,805 | n/a |
| Year-1 debt service | $1,653,663 | n/a |
| Year-1 coverage | 1.27x | n/a |
| Upfront costs | $137,500 | $0 |
| Interest, MIP and upfront costs | $13,448,827 | n/a |
| Cash flow after debt service | $4,496,565 | n/a |
| Balance owed at the end | $21,807,892 | n/a |
HUD: 35-yr amortization, fully amortizing. Agency: 10-yr term, 30-yr amortization.
HUDAgency or bank
Year-by-year table
| Year | HUD | Agency | HUD cash flow | Agency cash flow |
|---|---|---|---|---|
| 1 | $1,653,663 | n/a | $446,337 | n/a |
| 2 | $1,653,029 | n/a | $446,971 | n/a |
| 3 | $1,652,359 | n/a | $447,641 | n/a |
| 4 | $1,651,653 | n/a | $448,347 | n/a |
| 5 | $1,650,907 | n/a | $449,093 | n/a |
| 6 | $1,650,120 | n/a | $449,880 | n/a |
| 7 | $1,649,290 | n/a | $450,710 | n/a |
| 8 | $1,648,413 | n/a | $451,587 | n/a |
| 9 | $1,647,488 | n/a | $452,512 | n/a |
| 10 | $1,646,512 | n/a | $453,488 | n/a |
- Enter the agency or bank note rate you have been quoted. The tool does not assume one.
Estimate, not a quote. HUD, the lender and the appraisal decide the real numbers; Janover Capital is an advisor, not a lender, and is not affiliated with HUD or FHA.
Reading the results
- All-in rate
- The note rate plus the 0.25% annual MIP on the HUD side; agency and bank loans carry no mortgage insurance premium.
- Year-1 debt service and coverage
- Twelve months of payments. HUD's longer amortization usually means a lower payment for the same rate, which is why the same NOI supports more HUD debt.
- Effective cost
- The annual rate that equates the loan proceeds, net of upfront costs, with every payment and the balance repaid at the end of the period. It is the fairest single number for comparing loans with different fees, premiums and amortization.
- Balance owed at the end
- What you would repay or refinance. A HUD loan has no balloon; an agency loan usually matures before it is paid off.
What the HUD premium buys, in one example
Give both sides the same 5.4% note rate on $25,000,000 for 10 years, the HUD loan on a 35-year schedule and the agency loan on 30 years with no upfront costs on either side. HUD's first-year debt service is $1,653,663 against $1,684,592, but its effective cost is 5.73% against 5.40% because of the MIP and HUD fees, and it leaves $21,807,892 owed against $20,576,383. Real quotes differ on both rate and costs, which is why the calculator needs yours.
How the calculator works
- HUD loan. Level monthly principal and interest over your amortization, plus MIP at 0.25% a year on each year's average scheduled balance (90 FR 45789). Upfront: HUD's 0.30% application fee, the 0.25% upfront MIP and the costs you enter (MAP Guide 3.1.8, 3.1.10).
- Agency or bank loan. Interest-only months if any, then level payments over the amortization, repaid at maturity. No premium.
- Period. Your holding period, or the agency maturity if that comes first.
- Effective cost. Monthly internal rate of return of (proceeds − upfront costs, then −payments, then −balance at the end), times 12.
The tool types no market rates. The HUD default is the median note rate on 223(f) loans HUD endorsed between 2025-09-28 and September 30, 2026, from HUD's active loan file: a description of past loans. It ignores prepayment premiums, rate locks, closing timelines, reserves and the HUD-specific costs of compliance after closing.
Sources
- 90 FR 45789, FHA multifamily MIP changes, applications on or after Oct. 1, 2025 (Sept. 23, 2025)
- HUD MAP Guide, Handbook 4430.G, 2020 edition (effective Mar. 18, 2021)
- HUD Mortgagee Letter 2025-03, DSCR and LTV/LTC changes (Jan. 8, 2025)
- HUD, Multifamily FHA insured mortgages, active file
Rules checked against these sources on October 30, 2026. HUD changes program rules by Mortgagee Letter and Federal Register notice; the lender's commitment governs any loan.
Short answers
Is a HUD loan cheaper than a Fannie Mae or Freddie Mac loan?
It depends on the two note rates you are quoted, which this site does not type for you. HUD adds 0.25% a year of MIP, 0.30% for the application fee and 0.25% upfront MIP, but amortizes over up to 35 years with no maturity before the loan is paid off, which usually lowers the annual payment and removes refinancing risk. Agency and bank loans usually mature with a balance still owed. Enter both quotes to see which costs less over your holding period.
What is the all-in rate on a HUD multifamily loan?
The note rate plus the 0.25% annual MIP, for applications submitted since October 1, 2025. Upfront costs (0.30% HUD application fee, 0.25% upfront MIP, lender and third-party fees) raise the effective cost over a holding period; the effective cost line here includes them.
Want a real number?
Send the deal to the HUD desk at Janover Capital. A senior advisor sizes it against HUD and agency executions and replies, typically within one business day.
Use "Send these numbers to the desk" above and your inputs and results land in the Deal details box.