FHA Increases Eligibility Threshold for Standard Underwriting for Large Multifamily Loans
The Federal Housing Administration (FHA) today announced increases to the threshold for large multifamily loans from $75 million to $120 million. This is the first increase in the threshold since 2014 and will enable more FHA multifamily insurance applicants to use standard underwriting processes. FHA also announced it will review the threshold on an annual basis, with the possibility of increasing it in $5 million increments if warranted.
This change addresses the single-point risk of loss created by large individual loans and defines the underwriting standards for large multifamily loans. Except where otherwise stated, these policies do not apply to loans below the large loan threshold or to loan applications under Section 223(a)(7), which is the program to refinance existing FHA-insured multifamily loans.
Revisions have also been made to the Multifamily Accelerated Processing (MAP) Guide to reflect the new $120 million threshold and the annual review methodology. FHA’s other requirements in the MAP Guide related to large loans remain unchanged.
HUD’s risk analysis and industry feedback showed this upward revision was prudent, primarily because of increases in housing and construction costs over the last decade, without providing undue risk to the FHA insurance fund. The changes also allow for regular adjustments to the threshold to avoid undue lag in market changes.
“We know that borrowers are contending with the dual challenges of increased development costs and meeting the nation’s dire need for more rental housing,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon in a press release. “Anything we can do to prudently alleviate extra steps in obtaining FHA insurance will help all of us meet the housing supply challenges before us.”
NAHB advocated for and strongly supports this change. It is necessary to account for increased construction costs and to increase the supply of apartments affordable to low- and moderate-income families.
For more details, see Mortgagee Letter 2023-14.
Latest from NAHBNow
Labor | Advocacy
Apr 24, 2026
Labor Department Proposes New Joint Employer Rule for Wage and Hour EnforcementThe Department of Labor (DOL) released the text of a proposed rule that would establish a nationwide standard for determining joint liability for under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
Advocacy
Apr 23, 2026
NAHB Applauds Lawmakers’ Push to Remove Harmful Mandate from Major Housing PackageIn a letter signed by 76 representatives, the Real Estate Caucus and the Build America Caucus called on House Speaker Mike Johnson and Minority Leader Hakeem Jeffries to remove harmful provisions in the Senate-passed 21st Century ROAD to Housing Act that mandate the forced sale of single-family build-to-rent (BTR) housing.
Latest Economic News
Economics
Apr 22, 2026
State-Level Employment Situation: February 2026February’s labor market data point to a notable pullback in employment, with job losses concentrated across a majority of states and only modest gains elsewhere. While January showed solid momentum, February’s decline reflects emerging softness in hiring conditions, alongside uneven performance across the country.
Economics
Apr 21, 2026
Population Growth and Housing Supply Dynamics at the County Level in 2025U.S. population growth slowed notably in the latest Vintage 2025 population estimates from the U.S. Census Bureau, with the nation expanding by just 0.5% in 2025, roughly half the pace of the prior year. The deceleration was primarily driven by a sharp decline in net international migration (NIM), which dropped from 2.7 million to 1.3 million, while natural change remained relatively stable.
Economics
Apr 20, 2026
Construction Workforce Shifts: Fewer Tradesmen, More White-Collar JobsThe long-running shift in the construction labor force away from construction trades and toward management, business, and technical roles is ongoing and gaining momentum, according to NAHB’s analysis of the latest 2024 data from the American Community Survey (ACS).