What is the current FHA multifamily MIP rate?

The current regime (applications on/after Oct 1, 2025)

Per the Federal Register notice published September 23, 2025 (FR Doc. 2025-18379), HUD set the annual Mortgage Insurance Premium at a flat 25 basis points (0.25%) for every FHA multifamily insurance program — Section 221(d)(4) new construction / substantial rehab, Section 223(f) purchase / refinance, and 223(a)(7) streamlined refinance. The same notice eliminated the old rate-category schedule.

How MIP is calculated

• •MIP is charged on the unpaid principal balance (UPB) and paid in two parts: an upfront premium at closing and an annual premium paid monthly.
• •The annual MIP uses the declining-balance method — as the UPB amortizes down, the dollar MIP falls proportionally.
• •The upfront MIP is customarily financed into the loan, so amortization begins from the higher (principal + upfront MIP) balance. Model it as a separate line in your uses.
• •MIP is non-refundable — HUD retains it regardless of prepayment or performance. Do not model it as recoverable in IRR sensitivities.

Legacy loans (applications before Oct 1, 2025)

Loans endorsed under applications received before October 1, 2025 keep the MIP rate in effect at application for the life of the loan. The legacy schedule (per the 2016 MIP notice, 81 FR 14515) ran from 25 bps for green/broadly-affordable up to 60-70 bps for market-rate depending on program. When underwriting a refinance of existing FHA debt, model the in-place loan at its legacy rate and the proposed new loan at the flat 25 bps.