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HUD Reduces MIPs to 25 Basis Points for All Multifamily Programs

HUD has announced a major policy change: effective October 1, 2025, all Mortgage Insurance Premiums (MIPs) for multifamily programs will be set at 25 basis points (0.25%), the lowest allowed by law. This reduction in the MIP rates includes both the initial MIP rates and the annual MIP rates.

The reduced MIP rates will provide cost savings to all property types in an effort to stimulate rental housing development.  The savings will help expand access to HUD multifamily programs that feature long-term, fixed-rate financing.

Previously, MIP rates varied depending on the project – with 65 bps for standard market-rate deals, 35 bps for affordable housing, and 25 bps reserved for projects that qualified for the Green MIP incentive. Multifamily owners now have access to lower rates without additional reporting, documentation, or compliance requirements.

Connect with a NewPoint FHA expert today to learn more and find out how to get the most leverage on your next investment.

Read the full HUD announcement here.