HUD Slashes Loan Fees: Cheaper Backing for Big Projects
Published Date: 11/19/2025
Rule
Summary
Starting October 1, 2025, HUD is lowering the fee for borrowers using the Section 108 Loan Guarantee Program from 0.82% to 0.58% to cover loan costs for Fiscal Year 2026. This means communities borrowing money to improve neighborhoods will pay less in fees, making it easier and cheaper to get help. If you’re planning to use this program next year, get ready for a friendlier fee!
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Section 108 borrower fee cut to 0.58%
Starting October 1, 2025, HUD set the fee for loans guaranteed under the Section 108 Loan Guarantee Program at 0.58 percent of the loan principal for commitments awarded in Fiscal Year 2026. The fee is down from 0.82 percent in FY 2025 (a 0.24 percentage-point drop) and will be collected from borrowers at the time of loan disbursement if statutory authorization or appropriations language permitting the fee is in effect.
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