Federal Issues

FHA Raises Multifamily Large Loan Threshold

July 13, 2023

On Wednesday, June 28, 2023, the Federal Housing Administration (FHA) announced its intent to increase the threshold dollar amount for “Large Multifamily Loans” from $75 million to $120 million. The announcement included a statement by HUD that they would review the threshold on an annual basis with the possibility of increasing the limit by $5 million if warranted. This increase will allow traditional underwriting processes to be used when the loan is submitted for FHA insurance.

This change is one that NAR and multifamily housing advocates specifically requested just last year. Increasing the threshold by $45 million creates greater flexibility for lenders in this space and will facilitate the creation of more rental housing while also mitigating increased development costs. It also better reflects the risk profile of the borrowers.


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