In the recently released Mortgage Letter 2023-14, the Federal Housing Administration (FHA) increased the multifamily large loan threshold from $75M to $120M. This is the first major threshold increase after 2014. The FHA said it is increasing the threshold to enable more transactions to use standard underwriting processes when submitted for FHA Multifamily insurance. - The agency believes the increase would simplify underwriting for multifamily housing development without presenting an undue risk to FHA.
- The FHA did not make any changes to any other requirements in the MAP Guide regarding Large Loans and disclosed plans to review the threshold on an annual basis.
- According to FHA Commissioner Julia Gordon, this measure would remove additional steps in obtaining FHA insurance and help meet the housing supply challenges.
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