| What is the U.S. Department of
Housing and Urban Development? |
| Also known as HUD, the U.S. Department
of Housing and Urban Development was established in 1965 to develop
national policies and programs to address housing needs in the U.S. One of
HUD's primary missions is to create a suitable living environment for all
Americans by developing and improving the country's communities and
enforcing fair housing laws. |
| How does HUD help homebuyers and
homeowners? |
| HUD helps people by administering a
variety of programs that develop and support affordable housing.
Specifically, HUD plays a large role in homeownership by making loans
available for lower- and moderate-income families through its FHA mortgage
insurance program and its HUD Homes program. HUD owns homes in many
communities throughout the U.S. and offers them for sale at attractive
prices and economical terms. |
| What is the FHA? |
| Now an agency within HUD, the Federal
Housing Administration was established in 1934 to advance opportunities
for Americans to own homes. By providing private lenders with mortgage
insurance, the FHA gives them the security they need to lend to first-time
buyers who might not be able to qualify for conventional loans. The FHA
has helped more than 26 million Americans buy a home. |
| How can the FHA assist me in buying
a home? |
| The FHA works to make homeownership a
possibility for more Americans. With the FHA, you don't need perfect
credit or a high-paying job to qualify for a loan. The FHA also makes
loans more accessible by requiring smaller down payments than conventional
loans. In fact, an FHA down payment could be as little as a few months'
rent. And your monthly payments may not be much more than rent. |
| How is the FHA funded? |
| Lender claims paid by the FHA mortgage
insurance program are drawn from the Mutual Mortgage Insurance fund. This
fund is made up of premiums paid by FHA-insured loan borrowers. No tax
dollars are used to fund the program. |
| Who can qualify for FHA loans? |
| Anyone who meets the credit
requirements, can afford the mortgage payments and cash investment, and
who plans to use the mortgaged property as a primary residence may apply
for an FHA-insured loan. |
