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Define a HUD Home

You't heard you, and people talk about HUD houses 've seen listings for them. However, what really is a HUD home? HUD refers to the U.S. Department of Housing and Urban Development, which defines a HUD home as a residential home of 1 to 4 units the department has obtained from a foreclosure action on a mortgage insured by the Federal Housing Administration.


HUD turned into a Cabinet-level agency in 1965 and was created. It represented an important step in the evolution of national interest in home ownership relationship to 1934, when the Federal Housing Administration was established as a member of President Franklin Roosevelt’s New Deal. FHA’s earliest goal was going to increase home ownership. To achieve this it created the FHA Home Mortgage Insurance Program. Based on Lawrence Thompson’s”History of HUD,” the program has been definitely effective, together with the FHA helping 11 million families become homeowners between 1934 and 1973.

FHA Mortgages

The FHA does not provide mortgages. It insures mortgage loans from default by a homeowner. For doing so, the FHA fees homeowners a fee. The fee, in turn, goes to a fund that insures loan defaults. In 1968 the program was expanded to give subsidies to low-income home buyers, and the FHA later began reverse mortgage apps. Some of the hallmarks of all FHA-sponsored home loans are low down payments, low closing costs, and easy credit qualifications. The actual criteria for FHA loans vary by county and state.

HUD Homes

HUD homes are located in all areas of the nation in both rural and urban settings. Prospective owner-occupants of those houses receive priority in purchasing them. Even though these houses are offered at reasonable market prices, victims of Hurricanes Katrina, Rita and Wilma are able to purchase HUD homes at lower costs. Law enforcement officers, educators, firefighters, other public servants and non-profit groups may also purchase HUD homes at low costs as part of their Good Neighbor Initiative Program. The HUD site ( lists many available houses. You can also check with local HUD offices–in California they’re in Fresno, Los Angeles, Sacramento, San Diego, San Francisco and Santa Ana.

Modular and Manufactured Homes

HUD listings also include manufactured and mobile homes. All these have specific guidelines for eligibility, such as floor area of over 400 square feet, classification as property, and location on a permanent base. The houses must also have been built after 1976 and conform to government specifications for manufactured homes. Under HUD guidelines modular houses are viewed as site-built houses.

Other Apps

In addition to selling FHA-foreclosed houses, HUD offers assistance for home repairs and modernization in addition to rental subsidies on some possessions. The bureau also recently pioneered the Building House Affordable program to reduce home foreclosures. Income guildelines for many of these programs vary by locale.

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