U.S. Department of Housing & Urban Development (HUD) published its Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs while its Annual Revisions to Base City High Cost Percentage, last updated in 2025, remain unchanged. The 2026 base statutory per-unit lending limits have increased 2.3% from 2025. The local high cost multiplier factor adjustments remain 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 2026 for Section 221(d)(4) and 223(f) loan programs:

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 1.11x – 1.15x 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 as construction costs and real estate values have outpaced the CPI-based annual adjustments. Statutory lending limit waivers have also become more difficult to obtain and are not available for cash-out refinance transactions. The industry has been working with Congress on a more permanent solution. The bipartisan 21st Century ROAD to Housing Act — combining the Senate's ROAD to Housing Act and the House-passed Housing for the 21st Century Act, which moved to update the base limits for the first time since 2003 — passed the Senate 89-10 in March 2026 and is now under review in the House. However, a drafting error in the floor amendment would inadvertently reduce FHA multifamily loan limits below their current levels. The Mortgage Bankers Association has flagged the issue and is urging Congressional leaders to correct the error before the bill moves further. Both chambers support the underlying goal. 

This 2.3% increase helps HUD financing remain competitive and opens up HUD financing as a viable option for more projects, though a permanent legislative fix remains the more meaningful long-term solution. 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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