FHA Announces Reductions to Multifamily MIPPaul Winterowd
Exciting news was released yesterday January 28, 2016 that the FHA has announced Mortgage Insurance Premium (MIP) reductions on multifamily loans on affordable and energy efficient properties. The reasoning is straightforward – the government wants to encourage developers and owner operators of multifamily properties to bring more LIHTC and green properties online. There is definitely a shortage of affordable housing and this reduction will help spur that market forward.
We at Bonneville Multifamily Capital feel this is a step in the right direction to make FHA loans more attractive to developers and investors looking for lower costs of capital for their projects.
Mike Sorohan of the Mortgage Bankers Association (MBA) has summarized the announcement in a nice article found here.