HUD Increases Large Loan Limit to $120 Million



In a significant development for the housing industry, HUD announced on June 28, 2023, that it has revised its large loan limit from $75 million to $120 million.This adjustment marks a crucial step forward in accommodating the rising costs of housing and construction.

HUD’s Multifamily Accelerated Processing (“MAP”) Guide, which governs the underwriting standards for large multifamily loans, has been updated through this Mortgagee Letter to reflect the new loan limit. The preferential terms that were previously applicable to loans up to $75 million will now extend to oans up to $120 million.

These changes come after careful consideration of HUD’s risk analysis and valuable feedback from the industry. The revision to increase the threshold for Large Loans was deemed prudent considering the escalating costs associated with housing and construction over the past decade. By raising the threshold, HUD aims to support the development of larger multifamily projects without compromising the FHA insurance fund’s security.

Furthermore, the Mortgagee Letter introduces a mechanism for annual revision of the Large Loan threshold to account for inflation. Going forward, HUD will review and adjust the threshold amount on an annual basis, alongside other inflation-adjusted items in the MAP Guide. The Bureau of Labor Statistics ofthe Department of Labor or other inflation cost indexes will guide the percentage change used for inflation adjustment. It is important to note that under no circumstances will HUD implement a reduction in the current threshold amount.

“We applaud this increase in the large loan limit, which represents a significant milestone for the housing sector,” said Aaron Krawitz, CEO of Bravo Capital. “HUD recognizes the need to adapt to changing market conditions and ensure that our policies align with the evolving demands of the industry. By increasing the threshold and implementing a mechanism for inflation adjustment, HUD is demonstrating its commitment to facilitating the financingof larger multifamily projects while maintaining a responsible approach to risk management.”

HUD’s decision to revise the large loan limit to $120 million in 2023 establishes a base dollar amount and base year for future adjustments. The annual inflation reviews, conducted in $5 million increments, will enable HUD to account for the changing economic landscape and make appropriate revisions to the threshold amount.

 For more information and detailed guidance on these updates, please refer to the complete Mortgagee Letter available on HUD’s official website.

 About Bravo Capital: Bravo Capital is a leading privately held lender specializing in real estate lending, with a focus on multifamily and healthcare properties across the nation. With a national footprint and headquarters in New York City, Bravo Capital offers a wide range of financing solutions, including HUD,mezzanine, and bridge financing, enabling clients to achieve their real estate goals.

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For more information about Bravo Capital and its services, please visit or contact(212-729-4962).