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What Is HUD?

HUD offers extensive counseling services for potential home owners.
HUD stands for Housing and Urban Development, which is an agency of the United States federal government.
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  • Written By: Brendan McGuigan
  • Edited By: Niki Foster
  • Last Modified Date: 29 March 2014
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HUD is an acronym standing for Housing and Urban Development, a cabinet of the United States federal government. It has existed since 1965 and is charged with ensuring smooth policy for housing and city development. Since the mid-1970s, its focus has shifted primarily to housing, leaving urban planning more in the hands of individual cities.

One of the main functions of HUD, and certainly that with which most people interact, is its role as a lending facilitator. This agency helps people of low- and mid-level incomes acquire loans to purchase housing. HUD itself is not a lending institution, but it approves lenders and supports them materially.

HUD also offers extensive counseling services for potential homeowners. There is a network of organizations that work through the agency to address a wide range of key educational issues relating to home ownership. HUD funds many special programs through individual grants, all with the aim of assisting Americans who wish to buy a house. In addition to counsel relating to first-time purchases, the agency also supports organizations that offer advice on foreclosure, defaults, renting and many credit issues.

Virtually all real estate agents in the United States participate in HUD programs and are able to give advice to clients wishing to receive HUD assistance. All bids that receive this assistance must come through a participating real-estate agent and cannot be handled directly by the buyer.

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HUD's areas of assistance are not confined to those listed above; virtually anything relating to home-ownership or rental falls within the jurisdiction of the agency. This includes safety issues, housing discrimination, senior housing, home repair and homeowner's insurance. HUD also handles a number of initiatives designed as incentive programs for other sectors of society, not just low-income families. The Officer Next Door program, for example, offers HUD-owned homes to police officers at 50% of their market value.

The agency is also loosely connected to the the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), both of which deal with mortgages in the United States. The Federal Housing Administration (FHA) falls more closely under HUD, helping to guarantee mortgages to low-income homeowners.

In 2010, the HUD's budget was just over $46 billion US Dollars, helping to fund discount incentives, educational programs, bail-outs and buyer credits, all with the aim of assisting all Americans in becoming homeowners.

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Discuss this Article

anon285042
Post 12

What is HUD's relationship with mortgage foreclosure mediation programs operating all across the US?

anon284129
Post 11

People on welfare are complaining about taxes? Really?

anon195843
Post 10

People on welfare pay taxes too. Even doctors are losing their jobs due to the economy and are unable to afford their houses. I'm under hud housing and for all of you complaining about the taxes you pay, just wait until you have to be on welfare.

anon170512
Post 9

Yes and a lot of people do get welfare and live with a boyfriend and get away with it. I'd like to know how this keeps going on with the budget cuts like they are. The tax payers are the ones buying this, along with the single parents getting a big check every month and free schooling, and the more babies, the more money. Wake up America.

anon135474
Post 7

This article does not discuss Section 8 Rental Assistance.

anon113294
Post 6

Why does HUD help a family when they don't even stay there. And if they do stay there which is rare, the husband stays there and is not supposed to be there. I am sure there is a family who could really use the house, instead of this family abusing the system.

anon100179
Post 5

[anon64066] can you explain when you say "when it works properly?" More specifically towards examples when it doesn't?

anon65916
Post 4

HUD is just an assistance program, they still have to pay for things. No job or income isn't going to just get a house. It's basically the states way of cleaning up low income housing areas. It's actually a decent system when working properly.

anon64066
Post 3

Numbers 1 and 2: for your answer or a better understanding, read the article again.

anon41104
Post 2

Yes, I would like to know how a man who doesn't work hasn't had a job in 5 years depends on the state for welfare can get a hud home? How is he gonna pay for it? He doesn't work!

anon1777
Post 1

Who pays HUD? Is it the homebuyer, the seller, or tax dollars?

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