A HUD 232 loan is a loan insured by the U.S. Department of Housing and Urban Development (HUD) that is used to finance the construction and rehabilitation of facilities for elderly individuals requiring medical care or other long-term care, as well as the purchase and refinancing of senior-focused healthcare properties. HUD-held loans are loans that are held by HUD and are used in relation to FHA 232 financing. To learn more about HUD 232 loans, please fill out the form below to speak to a HUD/FHA loan expert.

A Green MIP reduction is a program offered by the Department of Housing and Urban Development (HUD) that allows borrowers to receive a discounted annual MIP of 0.25% if they make energy-efficient improvements to their property and receive a high enough score on an approved certification. The program is currently available for HUD 223(f) acquisition and refinancing loans, HUD 221(d)(4) construction and substantial rehabilitation loans, and HUD 223(a)(7) refinancing loans.

In order to qualify for a green MIP reduction, a property must be certified and reach a specific score with one of the following certification programs:

• Energy Star High Rise or Home
• NGBS
• LEED
• Green Point Rated New Home Multifamily
• Passive House, Enterprise Green Communities
• Earthcraft
• Earth Advantage
• Living Building Challenge

When it comes to qualifying for an MIP reduction, Energy Star's program is one of the most popular on the market. In order to qualify, properties need to achieve an Energy Star Statement of Design Intent (SEDI) score of 75 or above (which will be subject to annual inspection and recertification) in order to achieve and maintain their annual MIP discount.

Unfortunately, HUD's Green MIP Reduction program is not currently available for HUD 232 and HUD 232/223(f) loans. Many industry leaders are encouraging HUD to allow Section 232 and Section 242 mortgages into the program.

Unfortunately, HUD's Green MIP Reduction program is not currently available for HUD 232 and HUD 232/223(f) loans. The program is currently available for HUD 223(f) acquisition and refinancing loans, HUD 221(d)(4) construction and substantial rehabilitation loans, and HUD 223(a)(7) refinancing loans.

If you already have a property with a HUD 223(f) loan, you may be able to get supplemental financing through the HUD 241(a) loan program. In many cases, that supplemental financing can also qualify for a green MIP reduction of 0.25% to 0.35%.

In order to qualify for a green MIP reduction, a property must be certified and reach a specific score with one of the following certification programs:

• Energy Star High Rise or Home
• NGBS
• LEED
• Green Point Rated New Home Multifamily
• Passive House, Enterprise Green Communities
• Earthcraft
• Earth Advantage
• Living Building Challenge

When it comes to qualifying for an MIP reduction, Energy Star's program is one of the most popular on the market. In order to qualify, properties need to achieve an Energy Star Statement of Design Intent (SEDI) score of 75 or above (which will be subject to annual inspection and recertification) in order to achieve and maintain their annual MIP discount.

Unfortunately, HUD's Green MIP Reduction program is not currently available for HUD 232 and HUD 232/223(f) loans. The program is currently available for HUD 223(f) acquisition and refinancing loans, HUD 221(d)(4) construction and substantial rehabilitation loans, and HUD 223(a)(7) refinancing loans. It permits an annual MIP reduction to 0.25% for properties that have made significant energy efficient improvements. In order to qualify, a property needs to achieve a score of 75 or more on Energy Star's Statement of Design Intent (SEDI) examination or a comparable score on another approved green building certification.

Many industry leaders, including a group from the Committee on Healthcare Financing, are encouraging HUD to allow Section 232 and Section 242 mortgages into the Green MIP Reduction program. If HUD 232 loans are allowed into the program, borrowers may be able to get an annual MIP reduction to 0.25% for properties that have made significant energy efficient improvements.

Unfortunately, HUD's Green MIP Reduction program is not currently available for HUD 232 and HUD 232/223(f) loans. Many industry leaders, including a group from the Committee on Healthcare Financing, are encouraging HUD to allow Section 232 and Section 242 mortgages into the program.