HUD Announces New Debenture Interest Rates

On May 13, 2019, HUD published a notice in the Federal Register announcing changes to the interest rates to be paid on debentures issued on a loan or mortgage insured by FHA under the National Housing Act (Act).  Debenture interest rates are set by HUD, with the approval of the Department of Treasury, and published as a notice in the Federal Register twice a year.

The notice provides that the interest rate for debentures issued under the Act in connection with certain housing for low and moderate income families and displaced families during the six-month period beginning January 1, 2019, is 3.125%.  Additionally, the interest rate for debentures issued under the other provisions of the Act with respect to a loan or mortgage committed or endorsed during the 6-month period beginning January 1, 2019, is 3.375%.