FHA to Cut All Multifamily Mortgage Insurance
The FHA is proposing to lower multifamily mortgage insurance premiums (MIP) to a flat 25 basis points, the legal minimum, for all its multifamily programs, down from the current range of 25 to 95 points. This move aims to reduce financing costs and encourage more multifamily housing development amid rising construction and borrowing costs. In doing so, FHA also plans to eliminate outdated MIP categories, including its Green Housing incentives, while encouraging continued use of the ICC 700 National Green Building Standard (NGBS) for sustainable construction.
