MBA Statement on the Increase to FHA’s Multifamily Large Loan Limit Threshold
June 28, 2023
WASHINGTON, D.C. (June 28, 2023) — MBA President and CEO Bob Broeksmit, CMB, released the following statement regarding the U.S. Housing and Urban Development’s (HUD) announcement to increase the Federal Housing Administration (FHA) multifamily large loan limit threshold to $120 million:
“HUD’s increase to the large loan limit threshold – the first adjustment since 2014 – will help facilitate the production of more market and affordable rental housing units at a time when supply is desperately needed in markets across the country.
“MBA has long advocated for this move, citing labor and supply shortages, higher construction costs, and the importance of having loan limits that are consistent with economic conditions. The increase to the threshold – along with a new method to review it on an annual basis – will help to ensure that HUD multifamily financing is a viable option at all times during the lending cycle.
“We thank Secretary Fudge, Commissioner Gordon, and the Biden administration for these positive changes and will continue to work with them, members of Congress, and industry stakeholders on safe and responsible policies that eliminate barriers and increase rental housing supply for all households.”