What Exactly Are HUD Homes?
To call a home a “HUD home” is really a misnomer of sorts. The U.S. Department of Housing and Urban Development (HUD), as originally created under the Housing and Urban Development Act of 1965, is not a lender but a Cabinet-level agency with its secretary serving as a presidential appointee. To learn more about the history of the HUD housing, see this HUD housing article. In reality, HUD is the administrative agency that oversees, and is responsible for, a number of federal housing agencies and programs including the Federal Housing Administration (FHA) which insures home loans in specific qualifying areas of the country from default. There is nothing extraordinary about HUD homes other than the fact that the mortgage used to purchase it was insured by the FHA. Whether a single-family residence, condominium or townhome, the specifics of the room count, parking, amenities, etc. — none of it matters. What does matter, however, is that the price of the home fits within the guidelines to q
