With energy efficiency being one of the main priorities of the U.S. Department of Housing and Urban Development (HUD), HUD is offering valuable mortgage insurance premium (MIP) discounts for the production of energy efficient housing. If you’re a builder or multifamily building developer, you may be interested in qualifying for these discounts by adhering to the regulations set by HUD.
As a certified home rater, energy modeler, and home performance consultant for a number of certification programs, McNeely Building Group has extensive experience working with builders and contractors to achieve greater energy efficiency in new builds and renovations. Our team can help you understand the unique multifamily requirements set by HUD and help you navigate the process of qualifying for MIP discounts. We proudly serve the state of Michigan as well as many parts of Ohio.
How HUD Mortgage Insurance Premium Discounts Work
The MIP discount can be up to 75 points, which can add up to hundreds of thousands of dollars in savings over a typical seven- to 12-year loan life.
In order for a multifamily building to qualify for MIP discounts, it must be certified through an approved green building program and agree to meet certain energy efficiency targets set by HUD. Projects can earn green certification through a number of programs, such as ENERGY STAR®, LEED, Enterprise Green Communities, National Green Building Standard (NGBS), and Passive House. After certification, the project must prove, using the Energy Star Portfolio Manager, that it will meet a specific energy efficiency target once the building is occupied.
Consulting & Modeling for Your Next Project
Are you a builder interested in constructing an energy efficient multifamily building? Or perhaps you are a building owner who is looking to increase the efficiency of an existing building?
As an experienced energy modeler, McNeely Building Group consults builders throughout the design phase to help them identify the most cost effective ways to meet energy efficiency targets. Plus, because we are a third party rater and verifier with a number of certification programs — including ENERGY STAR® and LEED for Homes — we can help you navigate the process of earning green certification.