19.4.4.5 Changes to Loan Interest Rates
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States
A. Any change to the interest rate prior to Initial Endorsement requires an amendment to the Firm Commitment.
- Amendment for Rate Reduction. If the construction interest rate is reduced before Initial Endorsement and it is not feasible to reprocess the loan application, the Firm Commitment must be amended to state the proper interest rate and contain the following condition (see Chapter 8, Section 8.15.2.C.1):
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Chapter 19 Closing Guide 19.4 Document and Diligence Requirements
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- Any interest savings resulting purely from a differential between the HUD-processed interest rate and the actual, final interest rate may not be construed as excess funds that may be used to offset costs in other categories at the time of cost certification. Any such saving must be applied as a mortgage reduction.
- Reprocessing for Rate Increase. If the construction and/or permanent interest rate increases before Initial Endorsement, the Firm Commitment must be amended, and the loan application reprocessed to reflect the higher rate.
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