U.S. Department of Housing & Urban Development (HUD) published its Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs. The 2025 base statutory per-unit lending limits have increased 3.4% from 2024. HUD's 2024 Annual Revisions to Base City High Cost Percentage remains in place for now. The local high cost multiplier factor adjustments remains at 270% (2.7x) for all standard regions, with all such regions eligible for the 315% (3.15x) multiplier waiver, and a few non-contiguous regions designated as a "Special Limit Area" eligible for 405% (4.05x) multiplier adjustment factor.
The following are the published Basic Statutory Mortgage Limits for Calendar Year 2025 for Section 221(d)4 and 223(f) loan programs:
| Bedrooms | Non-elevator | Elevator |
| 0 | $66,864 | $72,228 |
| 1 | 75,904 | 82,802 |
| 2 | 91,749 | 100,689 |
| 3 | 115,254 | 130,257 |
| 4+ | 130,129 | 142,986 |
| Bedrooms | Non-elevator | Elevator |
| 0 | $67,188 | $78,368 |
| 1 | 74,427 | 86,835 |
| 2 | 88,903 | 106,477 |
| 3 | 109,580 | 133,357 |
| 4+ | 124,056 | 150,791 |
HUD insured loan programs offer long term, low interest rate financing for new construction and permanent financing for qualifying affordable housing and market rate apartment projects. The popular Section 221(d)4 and 223(f) multifamily loan programs offer loan amounts up to 87%-90% LTV / LTC (80% for cash-out refinances) supported by a 1.15x – 1.11x DSCR. However, loan proceeds available under these programs are subject to HUD’s statutory per unit lending limit caps. The statutory mortgage limits serve to limit HUD’s exposure to an individual project by capping loan proceeds on a per-unit basis.
HUD’s statutory mortgage limits have increasingly become an issue with the rise in construction costs and real estate values, which otherwise support higher loan proceeds. HUD’s statutory lending limit increases have not kept pace. Annual statutory limit adjustments, based only on increases in the Consumer Price Index, have been below the rise in construction costs and real estate values. Statutory lending limit waivers have also become more difficult to obtain and are not considered for cash-out refinance transactions. The industry is working with Congress on more permanent solution.
Either way, this 3.4% increase in statutory lending limits from 2024 helps HUD financing become more competitive and opens up HUD financing as a viable option for more projects. Additional details are provided in the formal published notices linked to above. Contact Us for more information and to learn more about HUD loan programs.
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