NGBS Green Certified multifamily buildings eligible for significant MIP rate reductions.

02/26/2016 Upper Marlboro, MD

HUD Announces Mortgage Insurance Premium Reductions for NGBS Green Certified Multifamily Buildings

Earlier this year, HUD announced that significant mortgage insurance premium (MIP) rate reductions will be available, effective April 1, 2016, for Federal Housing Administration (FHA) insured multifamily loans secured by buildings that attain NGBS Green certification. Annual MIP rates will be reduced to 25 basis points from the current rates, generally between 45 and 70 basis points, for all multifamily FHA-insured loan types that meet the following two conditions:

First, upon application for the FHA mortgage, the building must attain NGBS Green certification, or the building owner must attest that s/he is seeking NGBS Green certification for the building.
Second, the owner must attest that the building has achieved or will pursue a score of 75 or better on the 1-100 ENERGY STAR score using EPA’s Portfolio Manager. A score of 75 or better must be verified by a “qualified assessor” in preparing the physical condition assessment report.

The rate reductions can apply for multifamily new construction, renovation, refinance, purchase, or elderly housing. NGBS Green offers flexible and affordable certification for both new construction and renovation. If you are interested in seeking the dual benefit of lower MIP rates and NGBS Green certification, contact Home Innovation Research Labs. We are happy to help you get started.

# # #