This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Commissioner under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under Section 221(g)(4) of the Act during the 6-month period beginning January 1, 2025, is 4.375 percent is 4.500 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning July 1, 2024, is 4.625 percent.

However, as a result of an amendment to Section 224 of the Act, if an insurance claim relating to a mortgage insured under sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years. The yields can be found at https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H15. Please click here for step-by-step instructions to obtain the monthly average yield.

The Department will continue to publish semi-annually the debenture interest rate for the next six-month period in the Federal Register. Concurrently with the publication in the Federal Register, the Department will update the below list of debenture interest rates. For your convenience, here is a listing from 1980 to date. Debenture interest rates in effect prior to 1980 are available in the FHA Single Family Insurance Claims Handbook 4330.4, Revision 1, Appendix 4. The table below is also available as an Excel spreadsheet, Debenture Rate Table.

Debenture Rate Table