FHA MIP Reduction Published in the Federal Register, Effective Oct. 1, 2025
Today 9/23/2025, HUD published in the Federal Register the blanket reduction of Mortgage Insurance Premiums (MIPs) for FHA Insured Multifamily loans (colloqiuolly also known as MAP loans) to 25 basis points across the board.
A Long Time Coming
The reduction in MIPs and simultanous elimination of Green and Affordable MIP categories was rumored as early as February of this year and formally announced by a notice of proposed rulemaking on June 26, 2025.
What’s At Stake?
The net effect of the reduced MIPs is expected to be muted as the weighted average effective MIP for loans made under the prior premium schedule was 27-28 basis points.
However, the elimination of the Green and Affordable MIP categories will open make the FHA 223(f) and 221(d)(4) products comparatively more attractive to market rate borrowers. Additionally, overhead and costs associated with compliance under the Green and Affordable categories will be eliminated.
The new MIPs are effective for applications submitted or amended on or after October 1, 2025 so long as the loan has not been initially endorsed.
