Green MIP Reduction

Green MIP Reduction for HUD 223(f) Loans

Green MIP Reduction for HUD 223(f) Loans

FHA mortgage insurance premiums, or MIPs, are one of the most important expenses that HUD 223(f) borrowers need to factor into their budget. For most HUD 223(f) borrowers, annual MIP is 0.60% of the loan amount for conventional properties, while affordable properties receive an reduced MIP of 0.45%. However, with HUD's Green MIP Reduction program, borrowers can get a discounted 0.25% annual MIP, as long as they make energy-efficient improvements to their development.