What is HUD and what is a HUD home?
A1: HUD is an acronym that stands for Housing and Urban Development, a cabinet of the United States. It has existed since 1965 and is charged with ensuring smooth policy for housing and city development. One of the main functions of HUD is its role as a lending facilitator. HUD 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. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. HUD then sells the home at market value through a Marketing & Management Contractor.
