Multifamily
HUD Multifamily MIP: 0.25% for Every Program
For applications submitted on or after October 1, 2025, HUD charges a 0.25% annual and 0.25% upfront mortgage insurance premium on every FHA multifamily program, down from as much as 0.95%. HUD made the change in a Federal Register notice published September 23, 2025.
Before and after (market-rate)
| Program | Annual MIP before | Annual MIP now | Upfront MIP before | Upfront MIP now |
|---|---|---|---|---|
| 223(f) refinance or purchase | 0.60% | 0.25% | 1.00% | 0.25% |
| 221(d)(4) new construction or substantial rehab | 0.65% | 0.25% | 0.65% | 0.25% |
| 223(a)(7) refinance of an existing HUD loan | 0.50% | 0.25% | 0.50% | 0.25% |
| 241(a) supplemental loan | 0.95% | 0.25% | 0.95% | 0.25% |
| 207, 220, 213 and 231 | 0.70% | 0.25% | 0.70% | 0.25% |
The green, affordable and broadly affordable categories, which carried 0.25% to 0.35%, are eliminated: every property now gets 0.25%.
What changed
- One rate for every program and property type. Market-rate deals no longer need a green certification or an affordability restriction to get a low premium.
- The green requirements are gone. For loans already closed under the green MIP, the green certification evidence, annual energy reporting and green regulatory rider are, in HUD's words, "no longer of force and effect."
- How the upfront premium is charged. On refinance and purchase loans it is capitalized and based on the first year's annual premium. On new construction and substantial rehab it is based on the annual premium for the construction period, rounded up to a whole year.
What it means for your loan
- Lower debt service. On a $20 million loan, the first-year annual premium drops from roughly $120,000 at 0.60% to roughly $50,000 at 0.25%.
- More proceeds where coverage controls. HUD sizes market-rate 223(f) and 221(d)(4) loans below $130 million to a 1.15 DSCR, so a lower premium supports a larger loan on the same income.
- Existing HUD loans can catch up. A 223(a)(7) refinance is a new application, so it gets the 0.25% rate. See HUD 223(a)(7) refinance.
Many websites still list the old 0.60% and 0.65% premiums. The 0.25% rate is current.
Common questions
Does the 0.25% MIP apply to my existing HUD loan?
The notice applies to applications submitted or amended on or after October 1, 2025 that had not yet closed; it does not reprice loans already endorsed. A 223(a)(7) refinance moves an existing loan to 0.25%.
Is the MIP the same for affordable and market-rate properties?
Yes. Every FHA multifamily program and property type pays 0.25% annual and 0.25% upfront.
Do I still need a green certification to get a lower premium?
No. The green category is eliminated because every loan now gets the lowest rate.
I closed under the green MIP. Do I still have to report energy use?
No. HUD eliminated the green reporting requirements and the green regulatory rider for loans already closed under that rate.
Can HUD change the MIP again?
Yes. HUD sets the premium by Federal Register notice and can revise it the same way. A future change would apply to new loans, not to loans already endorsed, which keep the premium they closed with.
Send us the rent roll and T-12 and we'll size your loan at the 0.25% premium.
Updated October 2026. Source: FR-6522-N-02, 90 FR 45789 (September 23, 2025); market-rate sizing per HUD Mortgagee Letter 2025-03. See also: HUD 223(a)(7) refinance | HUD 241(a) supplemental loans | HUD loan types.