Definition
HUD, or the U.S. Department of Housing and Urban Development, is a government agency that works to provide fair and affordable housing. They help make homeownership accessible and fight against housing discrimination.
Understanding HUD's Role
HUD often comes into play during the mortgage process when exploring options like FHA loans. It oversees programs that help make housing more accessible. Simple terms: HUD sets guidelines and provides backing for certain loans. Example: If a home costs $200,000, an FHA loan might allow a down payment as low as 3.5% or $7,000. HUD's role is to support this framework. It's not a direct lender, so it doesn't provide loans itself. Instead, it works with approved lenders to help ensure fair housing opportunities for everyone.
