The Department of Housing and Urban Development officially announced a change to mortgage insurance premiums for several Federal Housing Administration loan programs, including for Section 231 Elderly Housing and Section 232 Health Care Facility loans, as previously mentioned in President Obama’s 2013 budget.
Commitments issued in fiscal year 2013 for market-rate New Construction/Substantial Rehabilitation loans under Sections 231, 232, and 242 will have MIP increases of 20 basis points. Section 223(a)(7) refinancing loans will see premiums up five basis points. Premiums for certain other healthcare facility loans, including those under Section 232/223(f) and Section 223d (operating losses), will increase by 15 basis points.
The increases won’t apply to Low Income Housing Tax Credit Loans, however, or other affordable housing loans for HUD-assisted properties or loans insured under FHA’s Risk Sharing programs.
The raised premiums will provide additional protection for the General Insurance/Special Risk Insurance fund and increase receipts to the Treasury, according to HUD. They’re also meant to encourage private lending to return to the market.
Positive credit subsidy obligation will not be required in FY 2013 for loans under any of the active mortgage insurance programs for healthcare facilities, HUD added.
For more details on this announcement, click here.
Written by Alyssa Gerace