What an FHA multifamily loan costs to insure and close
FHA apartment programs now pay a 0.25% annual mortgage insurance premium and 0.25% up front, on applications submitted or amended on or after October 1, 2025. Risk-sharing loans and health care and hospital programs differ. On a $20,000,000 loan that is $50,000 a year in premium, plus HUD's application fee and the lender's fees.
Mortgage insurance premium, before and after October 1, 2025
| Program | Annual before | Upfront before | Annual now | Upfront now |
|---|---|---|---|---|
| 221(d)(4) | 0.65% | 0.65% | 0.25% | 0.25% per construction year |
| 223(f) | 0.60% | 1.00% | 0.25% | 0.25% |
| 223(a)(7) | 0.50% | 0.50% | 0.25% | 0.25% |
| 241(a) | 0.95% | 0.95% | 0.25% | 0.25% per construction year |
| 220, 213, 231, 207 | 0.70% | 0.70% | 0.25% | 0.25% per construction year |
Under the new schedule, the upfront premium on refinance programs equals the first year's annual premium. On new construction and substantial rehab programs that insure advances, it is the annual rate for each year of construction, rounded up to a whole year (90 FR 45789, footnote to the premium table). Risk-sharing loans under Sections 542(b) and 542(c) pay 0.25% times FHA's share of the risk. Health care and hospital programs are not covered by the 2025 cut.
HUD's fees
| Fee | Amount | Source |
|---|---|---|
| Application fee, most programs | 0.3% of the loan | MAP Guide 3.1.8 |
| Application fee, 223(a)(7) | 0.15% | MAP Guide 3.1.8, 18.3.7 |
| Inspection fee, new construction | 0.5% | MAP Guide 3.1.9 |
| Inspection fee, 223(a)(7) | None | MAP Guide 3.1.9, 18.3.7 |
Lender fees
HUD caps what the lender can charge for financing and placement, including its legal fees, at 3.5% of the loan, or 5.5% in a deal with tax-exempt bonds (MAP Guide 3.1.11). For a 223(a)(7) the cap is 3.5% on the first $2 million, 2% above (MAP Guide 18.3.7). Third-party reports (appraisal, physical needs, environmental, market study) are separate costs that can be financed.
A worked example
A $20,000,000 223(f) refinance: $50,000 upfront premium, $60,000 HUD application fee, and $50,000 of premium in the first year. Under the old schedule the same loan would have paid $200,000 up front and $120,000 a year. Lender fees depend on the lender, up to the 3.5% cap.
Sources
90 FR 45789 (September 23, 2025); HUD MAP Guide, 2020 edition revised March 19, 2021, sections 3.1.8 to 3.1.11 and 18.3.7. Checked 2026-10-24.