HUD raises the Section 184 upfront mortgage guarantee fee to 1.50 percent from October 1

The Department of Housing and Urban Development will raise the upfront guarantee fee on new Section 184 firm commitments from 1.00 to 1.50 percent on October 1, according to a notice filed Friday. Refinances are included.

The change does not touch loans already guaranteed. HUD will also leave the annual guarantee fee at zero. New commitments under the Skilled Workers Demonstration Program move from no upfront fee to 1.00 percent.

Section 184 guarantees financing for eligible Indian families, housing authorities and tribes to build, buy, refinance or rehabilitate one- to four-family homes. HUD said the program's lifetime default rate is about 3.50 percent and tied the fee increase to operating without annual congressional appropriations.