HUD insures mortgage loans to help people buy or refinance their current homes with a low down payment. HUD doesn't give you the loan directly. You'll need to go to a local HUD-approved lender, who will help you find out if one of HUD's programs is right for you. But, you can learn about HUD's mortgage insurance programs right here!
HUD's FHA Loan
If you're interested in a buying a home and you meet our credit qualifications, you may be eligible for a low down payment of 3 percent. On a $50,000 home, that's a downpayment of $1,500, compared with $5,000 - $10,000 for most conventional loans. You also can wrap your closing costs and fees into the mortgage.
HUD-insured loans are available in urban and rural areas for single family homes and for 2-unit, 3-unit, and 4-unit properties
To get a HUD-insured loan, you need to apply to a HUD-approved bank, mortgage company, or savings and loan association for your mortgage.
HUD-Insured Loans for Rehabs
HUD insures loans to rehab and make improvements on one- to four-unit homes that have been completed for at least one year. You may be eligible if you are an owner. There is no upfront mortgage insurance premium. Loans range from under $5,000 to a maxim um of $25,000.
HUD-Insured Loans for Special Credit Risks
In some cases, HUD insures loans for people who have had credit trouble and do not meet standard credit requirements to buy low cost homes. Down payments can be as low as 3 percent, and closing costs can be wrapped into the mortgage.
HUD-Insured Energy Efficient Loans
If you are buying or refinancing a home and you'd like to roll the cost of improvements to make the home more energy efficient into your mortgage, HUD's Energy Efficient Mortgage Insurance Program may be for you. The cost of the energy efficient improvements that may be eligible for financing is the greater of 5 percent of the property's value (not to exceed $8,000) or $4,000.
HUD-Insured Loans for Condominiums
HUD insures loans to buy or refinance a principal residence in a condominium development. Down payments can be as low as 3 percent, and closing costs can be wrapped into the mortgage.
HUD-Insured Loans for Disaster Victims
If you have lost your home as a result of a natural disaster, you may be eligible for a HUD-insured loan. For home disaster loans, no down payment is required.
The President must have declared your community a natural disaster area in order to qualify.
HUD-Insured Reverse Mortgages for Elderly Homeowners
HUD provides mortgage insurance to elderly homeowners to convert the equity in their homes into monthly income and/or a line of credit to be repaid when they no longer occupy the home.
