FHA to Reduce Insurance Rates for Multifamily Homes

The Federal Housing Administration today announced a series of reductions for the insurance rates it charges on multifamily home loans. Housing designated as “broadly affordable” will see rates reduced to 0.25 percent, while mixed-income housing rates will drop to 0.35 percent. The FHA will also lower the insurance rate for energy-efficient properties — those committed to green building and energy standards — to 0.25 percent.

The FHA estimated that these reductions will help to rehabilitate 12,000 units of affordable housing, which could benefit as many as 40,000 families over the next three years. The new insurance rates will take effect April 1.