|HUD refers to the US Department of Housing and Urban Development, which has been the main force towards achieving the cherished dream of homeownership for each and every American family since 1965, the year of its assuming a cabinet-level status in the US under a legislative act. Before its coming into existence, the housing industry of the country was regulated by US Housing Act of 1937.
The interregnum between HUDís first secretary Robert C. Weaver and the present Shaun Donovan has seen tremendous changes in its policies in regard to housing, mortgage and foreclosures. Today HUD is at the helm of many activities that are being carried out by FHA, Fannie Mae and Freddie Mac at the federal level or a housing authority at a local level. Though it focuses more on providing affordable housing solutions to mainly those who are found at the lower rung of the economic ladder, there is virtually no area of homeownership and rentals that does not come under the purview of US Department of Housing and Urban Development.
What are HUD Homes?
The major objective of HUD is to ensure quality housing accommodations at reasonable costs to the citizens who cannot afford to own or rent a home, no matter which state they belong to in the US. To make this a reality, HUD has initiated a number of housing assistance and grant programs that cater to varying requirements of home seekers across the nation. Usually the financial assistance or loans are not provided directly to the individuals, but through a private agency or a housing authority serving at the local level.
Most HUD-funded programs are targeted at certain sections of the community that require help for a dignified and healthy living. These sections, for example, may include families with low income, displaced people, disabled, elderly and single mothers. The task to identify families eligible for obtaining HUD assistance is left to the local public housing agencies. HUD has programs for homeownership as well as rental assistance, and thus it reaches a wide section of community to fulfill their dwelling requirements in the most convenient manner. HUD programs are free from housing discriminations based on gender, race or family status and are based on the Fair Housing Act of 1968. Any violation of a regulation under this act can be reported directly to HUD, which gets into an immediate action as soon as a complaint is made.
HUD Homes for Sale
HUD homes for sale are those houses that are abandoned by the borrowers of FHA after their properties are foreclosed. As the phenomenon of foreclosures is on an increase across the nation, the inventory of such abandoned properties is expanding with new additions to its listing. Apart from this, HUD promotes landlords and property owners to list their properties on its website in order to give people in greatest housing needs an easy access to affordable homes for sale or rent.
Some of the homebuying programs administered by HUD are mentioned here:
It can be a good deal to buy HUD homes, as you stand to lose nothing in case of a foreclosure. HUD pays the balance of the mortgage payment to your lender and takes the ownership of your home in its hand only to sell it later in the open market. To increase marketability of the houses it owns, the US Department of Housing and Urban Development has contracted a few real estate management companies in different locations. PEMCO, Ltd. is one such company that helps HUD administer the property management and sell houses under its possession in California, Georgia, Hawaii, Guam and Mariana Islands.
- Good Neighbor Next Door: A consolidated program earlier known as Teacher Next Door, Officer Next Door and Firefighter Next Door Program separately.
- Homeownership for Public Housing Residents
- Hurricane Evacuees Discounted Sales
- Indian Home Loan Guarantee Program (also known as Section 184)
HUD helps homeowners retain their possession by making them aware of the resources and programs available for successfully preventing the occurrence of a foreclosure. To start with, you can take advice from a foreclosure avoidance counselor or meet your lender for a viable mortgage modification settlement. The department helps you explore and use the resources made available by your state or local administration. You can even get benefit from Making Home Affordable Program, HOPE NOW and other refinance options brought to you by HUD.
On the other hand if you are a buyer seeking low-cost foreclosed homes for sale, check the HUD listing of your area. To choose from manifold options of HUD foreclosed homes, you can contact housing counselor serving your area. Before buying a home you must contact a HUD-authorized real estate professional who will submit a bid on your behalf. HUD foreclosures have made it possible for you to find a great variety of affordable homes in US states like Texas, Florida, Georgia, Michigan, Ohio and Colorado.
HUD Homes for Rent
HUD homes for rent and rental solutions are available for families and individuals that meet its eligibility criteria. HUD rental assistance programs may comprise the following kinds of housing options:
You may need to contact your local public housing agency in order to get benefits of most rental assistance programs funded by HUD. Stay connected with this site to get detailed information about HUD homes for rent and HUD homes for rent to own in states like Maryland, Michigan, Georgia, Ohio and Virginia.
- Privately owned apartments available at reduced rents
- Public housing
- Section 8 housing, also known as Housing Choice Voucher Program
HUD Section 8
HUD Section 8 is a voucher program that allows tenants to get the home of their choice while availing the rental assistance from their respective housing authorities. Only families with incomes falling within the income limits of their area are eligible for application to this program. Moreover, it is essential for the tenant as well as the landlord to abide by HUD section 8 regulations and follow its guidelines as long as they are a participant of the program. The availability of section 8 housing vouchers in a particular location depends upon a number of factors, such as the fund available at the housing authority in question or the willingness of a landlord to rent his/her properties to voucher holders.
FHA is the financial arm of HUD and is responsible for providing mortgage insurance to citizens buying condos, single-family, multifamily and other kinds of HUD approved homes. It is the largest public mortgage insurance agency in the world with a great range of loan services to people seeking affordable housing solutions with easy options across the nation. FHA loan solutions can help home buyers in several ways from low down payments to low closing costs and easy credit qualifying. We, on this website, have tried to delve deeper into its aspects like HUD FHA guidelines, underwriting guidelines, appraisal guidelines, appraisers, refunds, loans, loan limits and foreclosures. At present, FHA is providing mortgage insurance assistance to over 13000 families with approximately 5.2 million in single-family home mortgage insurance.
A wide spectrum of mortgage options is available for eligible home buyers under any of its housing assistance programs. The finance is provided through FHA which also helps a buyer with the insurance of a mortgage taken from a private lender. FHA mortgage insurance programs help you get a better deal from your lender by obtaining a home loan with low down payments or low closing costs. Special categories of home buyers, such as seniors and those buying home for the first time can find HUD mortgage even more helpful in realizing their dream of homeownership. To check FHA lending limits and qualify for a home loan or a home refinance loan visit its website. On HUDís website, you get additional information and resources on mortgage options like 202, 223(f), 232, 203(b) & 203(k), mortgage modification programs, counseling, HUD 1 settlement statement & RESPA disclosure requirements, insurance premium amount and also how you can avoid a possible mortgage fraud by your lender.
Announcements are made from time to time by HUDís grants office on the availability of funds and the process of application for first time home buyers as well as for participating landlords. Grant opportunities for home buying, repair, improvement, renting and foreclosure can be searched electronically by visiting the www.grants.gov, a federal government website. The Office of Departmental Grants Management and Oversight (ODGMO) have been established as a grant management center to develop a department-wide perspective on different kinds of grants available for US citizens. Check latest HUD grants announcements for 2010 on its website.
Counseling to prospective buyers and existing homeowners is a major task that HUD accomplishes through a network of housing counselors and counseling agencies spread across the nation. These HUD-sponsored agencies guide people by giving them the best advice on issues like home buying, renting, foreclosure, loan modification, credit and reverse mortgage. The housing counseling program is aimed at educating the participants of various HUD housing assistance programs through a certified counselor or counseling agency. To get certification and grants from the department, the agency must contact and submit an application for approval at the nearest FHA Homeownership Center. The Housing Counseling Notice of Funding Availability (NOFA) is published periodically in the Federal Register and on the website of HUD in this regard.
HUD Client Information and Policy System (HUDCLIPS)
This is an online resource containing HUD forms, handbooks and detailed information on its housing policies and regulations. You can find here various kinds of forms in English as well as in Spanish along with HUDCLIPS resources like handbooks, mortgagee letters, guidebooks, notices, bulletins, acts, legal library, fair market rents, Section 8 renewal policy guide, income limits and a number of other records and documents.
U.S. Department of Housing and Urban Development
451 7th Street S.W.,
Washington, DC 20410
Phone: (202) 708-1112
TTY: (202) 708-1455