HUD 232 Loans and the Green MIP Reduction 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. 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.
While HUD 232 loans currently don't qualify for the Green MIP Reduction program, that may change soon. 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.