Department of Housing and Urban Development Mortgages
The acronym HUD refers to Department of Housing and Urban Development. HUD is a department of the US federal government.
According to HUD's website, the mission of HUD is: "to increase homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management and accountability and forge new partnerships--particularly with faith-based and community organizations--that leverage resources and improve HUD's ability to be effective on the community level."
That's a substantial mandate. As a result, HUD runs a wide variety of programs for consumers and for organizations, in order to foster affordable housing in the US. There are such a variety of programs that we'll only mention the most popular programs here. If you want more information, be sure to check the HUD website.
One of the biggest things that HUD does is help with buying a home. This is the primary reason most people come to HUD; they want to buy and they've run into problems, whether economics or discrimination. If you are having a problem with discrimination in home buying, you can lodge a complaint through HUD. If you are having an economic difficulty, including saving a down payment or being able to get good financing, HUD can help you directly.
Some home buying programs are designed to encourage people with certain jobs (like teacher and law enforcement officers) to move into neighbourhoods. The benefits to the home purchaser in these programs are substantial. You may be able to get up to 50% off of the price of a home in a designated revitalization area. However, you do have to qualify by proving you are a full-time member of the designated employment group. It's well worth the time to look into, if you are willing to move into a neighbourhood in these revitalization areas.
If you are currently a public housing resident, HUD wants to help you to own your own home instead of rent. This is part of the HUD mandate to foster home ownership. In some cases, existing rental buildings may be converted to condominium style housing, and you could be able to buy your current apartment. You can find out more about the programs and options for you through your local public housing authority or public housing agency.
HUD is also in the mortgage business. You can get lower cost mortgages and mortgage insurance through FHA, which is a program within the HUD mandate. Since you can use the FHA to get a mortgage, often with a very small down payment, it can be very helpful to families who could afford a mortgage, but are having a hard time saving for a down payment.
Some HUD programs vary at the state level. It's worthwhile to check with your local state government to find out if there are grants or other special HUD programs running in your state or your area.
Once you own your home, HUD can also help you to upgrade and renovate it! So not only will HUD help you to get a home, it will also help you to make that home more liveable for you. If your family includes seniors or people with disabilities, HUD may have money in the form of loans or grants that will help with necessary renovations.
Are you a renter who isn't ready to move? No problem. HUD can help you if you run into problems with your rental accommodation, due to cost or discrimination.
Not everything works out exactly as we might have intended. As a result, because HUD is also in the mortgage business for low and moderate income families through the FHA, it may also have foreclosed homes for sale. You can purchase these homes, and often at a good price.