FHA Multifamily Premiums Will Be Reduced for Tax Credit Projects

摘要

HUD is reducing the mortgage insurance premium (MIP) to 45 basis points for all FHA loans for low-income housing tax credit projects with commitments issued in fiscal 2006, according to a notice published in the August 30 Federal Register. Comments on the MIP schedule are due September 29. The annual MIP is also being lowered to 45 basis points for Section 207/223(0 loans to refinance or purchase apartments, and Section 223 (a) (7) refinancings of FHA-insured apartment loans. In addition, HUD will reduce the premiums for risk-sharing loans under Sections 542(b) and 542(c) for projects with tax credits to 45 basis points. This change will require a revision of regulations and renegotiation of risk-sharing agreements. Until those steps are taken, the premiums will stay at 50 basis points.