What is MIP (Mortgage Insurance Premium)?

Mortgage Insurance Premiums (MIPs) and the HUD 221(d)(4) Loan Program

A HUD mortgage insurance premium, or MIP, is paid annually, beginning at closing for each year of construction and then annually. MIP for HUD multifamily construction loans is:

  • 65 basis points for market rate properties

  • 45 basis points for Section 8 or new money LIHTC properties

  • 70 basis points for Section 220 urban renewal projects that are not Section 8 or LIHTC

  • 25 basis points for projects that qualify for the green MIP reduction program.


To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.