HUD's September 2025 notice set multifamily MIP at a uniform 25 basis points upfront and 25 annually. The transition rule is a single clause, and every word in it does work: the revised MIP is effective for any FHA multifamily mortgage insurance application submitted or amended on or after October 1, 2025, so long as the loan has not been initially endorsed.
‘Or amended’ is the generous part
HUD did not limit the new rate to new applications. An application already in the queue could be amended on or after October 1, 2025 and pick up the lower premium. For a 223(f) borrower, that was a reduction from 100 basis points upfront and 60 annual to 25 and 25 — 35 basis points a year off the carry, for the life of a 35-year loan, available by amending a filing already made.
For applications still pending today the same logic governs any further amendment. The relevant question is never only "when did we apply" but "what is the latest date on which this application was amended."
‘Not been initially endorsed’ is the hard stop
Initial endorsement is the point at which HUD formally endorses the note for insurance. After that, the premium on the loan is fixed. There is no retroactive repricing of an endorsed loan, no refund of upfront MIP paid at the old rate, and no mechanism to migrate a closed loan to the new schedule.
An owner who closed an FHA apartment refinance in, say, mid-2025 at 100 and 60 basis points is carrying those rates for the duration. The only route to the new schedule is a new transaction — which, on an already-insured loan, usually means a 223(a)(7) streamline refinance, where the MIP also dropped to 25 and 25.
Worth modeling if you closed under the old rates. A 223(a)(7) on a loan paying 60 basis points annual MIP captures a 35 basis point reduction on the premium alone, before any interest rate benefit. On a large balance that can carry the transaction costs by itself, even if the coupon moves the wrong way.
What was eliminated outright
Three categories disappeared on the date of the notice rather than on October 1:
- Broadly Affordable Housing — previously 25 basis points, now simply the uniform 25. In practice this tier lost nothing, because the rate it offered is now the universal rate.
- Affordable: Inclusionary Vouchers — previously 35 basis points. These deals now pay 25, an improvement.
- Green and Energy Efficient Housing — previously 25 basis points. This is the real loss, because the green premium was the incentive that paid for certification. The uniform rate removes the pricing reward while leaving any regulatory rider, certification obligation and annual energy reporting on already-closed loans in place. See the green MIP article.
The programs in the table
The notice covers Section 207 new construction and manufactured home parks, 221(d)(4), Section 220, Section 213 cooperatives, 207/223(f), 223(a)(7), Section 231 elderly housing, 241(a) supplementals, and the Section 542(b) and 542(c) Risk-Sharing programs. Risk-Share rates are scaled by FHA's percentage of risk assumed.
Section 232 and Section 242 appear nowhere in it. Healthcare and hospital premiums were set by a separate notice and did not change — the point of a separate article, because the error runs in both directions and we have seen healthcare term sheets quoting 25 basis points.
Practical checks
- On any pending application, confirm the amendment date on file and whether initial endorsement has occurred.
- On any term sheet, confirm the MIP line against the program. 25/25 on an apartment deal is right; 25/25 on a 232 deal is wrong.
- On any loan closed before October 2025, run the streamline math before assuming nothing can be done.
Primary sources for this article
Figures stated as current are current as of October 13, 2026. HUD revises mortgagee letters and handbooks frequently; where a provision is a draft rather than operative guidance we say so on the page. This is general information, not legal, tax or financial advice, and not a commitment to lend.
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