HUD Jacks Up Loan Fees: Borrowers Brace for 1.05% Sting
Published Date: 9/28/2026
Rule
Summary
Starting October 28, 2026, borrowers using HUD’s Section 108 Loan Guarantee Program will see the fee to cover loan costs jump from 0.58% to 1.05%. This change helps HUD manage the risks and keep the program running smoothly for communities. If you’re planning to borrow under this program in Fiscal Year 2027, get ready for a slightly higher fee.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Section 108 borrower fee rises to 1.05%
If you plan to borrow under HUD's Section 108 Loan Guarantee Program for commitments awarded in Fiscal Year 2027, HUD will charge a fee of 1.05 percent of the loan principal instead of 0.58 percent. HUD will collect this fee at the time of loan disbursement if Congress enacts FY2027 appropriations language authorizing the collection or HUD is otherwise authorized by statute; applicability date October 28, 2026. This is a 0.47 percentage-point increase from FY2026 and is intended to offset the Federal credit subsidy costs of the guaranteed loans.
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