What is HUD?
Categories: None | Tags: First Time Homebuyer, Mortgages, Assistance, Glossary, Fha, Loans
What is HUD?
HUD stands for the U.S. Department of Housing and Urban Development. It is the primary federal agency responsible for implementing our nation’s housing programs on the federal level in partnership with state, local, non-profit and private sector partners. HUD has housing programs to support all types of housing programs and projects that serve everyone from the homeless to the elderly homeowner.
HUD helps First-Time Home Buyers
While most first-time homebuyers will not have direct contact with HUD, it does fund a wide variety of programs that benefit and serve first-time home buyers. Through state and local governments, as well as, non-profit housing agencies, HUD funds federal HOME and CDBG* grants that is used to deliver homebuyer education, counseling, down payment assistance, single-family housing developments, secondary financing, and other related programs and services. Most of HUD’s direct funds, like the HOME and CDBG funds, are targeted to serve low-income households. Click here to search for the local low-income limits area in your area.
CDBG stands for the Community Development Block Grant program. CDBG funds are awarded by HUD directly to eligible state and local government and can be used for a wide variety of others types of uses in addition to housing programs. HUD maintains a good directory of homebuying programs by state as well as, a roster of FHA-approved secondary financing program providers.
HUD-Approved Housing Counseling Agencies
HUD is also responsible for awarding HUD housing counseling funds and for approving housing counseling agencies. HUD-Approved housing counseling agencies deliver homebuyer education and pre-purchase counseling services to first-time homebuyers, as well as, existing homeowners. Click here for a directory of HUD-Approved housing counseling agencies.
HUD, FHA and HUD 184
HUD is also the parent organization for the Federal Housing Administration also known as FHA. FHA is a federal mortgage insurance program that insures home loans made by FHA-approved mortgage lenders. These loan programs include the popular FHA 203 (b) loan program, as well, as the FHA 203 (k) loan program. HUD also insures loans made to federally-recognized tribal members through the HUD 184 loan program.
HUD also sells the recently foreclosed homes it owns. It refers to these properties as HUD Homes. HUD Homes are recently foreclosed properties that it gets from FHA-Approved Lenders and loan servicers. These HUD Homes are resold to homebuyers through its’ Website called the www.HUDHomeStore.com.
In specific areas and under special circumstances, HUD will sell its’ HUD Homes at a substantial discount to emergency medical technicians, fire fighters, law enforcement officers, and school teachers through what it calls the Good Neighbor Next Door program.
HUD also sells many HUD Homes to first-time homebuyers in general provided the homebuyer can obtain financing on their homes. In some cases, HUD/FHA will insure the sale of the HUD Homes or offer incentives to first-time homebuyers to purchase a HUD Home. However, first-time homebuyers should know that the HUD Homes are sold in as-is condition. This means the homebuyer may need to obtain special financing, like a HUD 203 (k) loan in order to be able to purchase and renovate a home that requires improvements to be made to the property before it can be occupied.
Learn more about HUD
To learn more about HUD and all the great housing programs and services it funds visit www.HUD.gov.