HUD is a federal housing program that is designed to make things easier for new homeowners. So why is there so much confusion about what resources are available?
FHA and HUD fall under the same umbrella. They work in conjunction to provide affordable housing resources for mortgages and loans. The Federal Housing Administration became part of the Department of Housing and Urban Development so that these organizations could work together to create federally insured loans available to first time homebuyers and lower income brackets that might not otherwise qualify for traditional loans.
Because these loans are federally insured, lenders are more willing to negotiate lower down payments, fewer closing costs, and work with candidates whose credit scores might not otherwise qualify them for a loan. The loans are still financed by traditional lenders, despite the federal insurance. They are appealing because this widens the bracket of qualifying parties and makes it less difficult to become a homeowner.
There are several different circumstances that might make a HUD home program the ideal choice for you. Some plans offer small mortgage payments that gradually increase over time, and are a good option if you are projected to be making more money in the near future at a new job.
For more information on HUD home programs and other mortgage programs, visit our Mortgage Loan Programs page or contact our loan experts today.