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Information about HUD and HUD Programs

Information about HUD and HUD Programs
Betsalel Cohen
UpdatedApr 11, 2024
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    3 min read
Key Takeaways:
  • HUD oversees FHA and Ginnie Mae.
  • HUD offers valuable information and counseling services.

HUD: Government Involvement in the Housing and Loan Market

HUD or The United States Department of Housing and Urban Development is a department of the Federal government, represented in the Cabinet by the Sec. of Housing and Urban Development. The current Sec. of HUD is Shaun Donovan, serving under President Obama.

HUD is a big organization covering a myriad of topics including, single family housing, multi-family housing, government housing projects, mortgages, and rents. The HUD website contains a complete listing of HUD projects.

Why is HUD Important to Me?

HUD is important to you because it sets government policy and oversees key players in the housing and mortgage market, including the FHA (Federal Housing Authority). Since the housing the crisis of 2007, FHA backed (guaranteed) loans have become a central part of the mortgage market.

Here are some of the services that HUD provides:

HUD Mortgage Loan Programs: HUD loans are done through the FHA. FHA loans cover a wide variety of circumstances including purchase loans, refinance loans, purchase and renovation 203k loans, reverse mortgage loan, and special housing project loans.

In general, a FHA purchase loan has less strict underwriting requirements, including a low minimum credit score (580 - 620) and low down payment (only 3.5% of purchase price). All FHA loans require MIP, mortgage insurance premium. For more information read the articles about FHA loans, FHA streamline refinance, and FHA refinance loans

Quick tip

if you are in the process of purchasing a home and looking for a mortgage, then receive a mortgage quote for a fha loan as well as a conventional loan, from a mortgage provider.

Information and Counseling: The HUD maintains a Web Portal with extensive information about purchase, rent and mortgage. You can find detailed information about their various programs.

In addition, HUD has housing counselors, who give free counseling to prospective home purchases and mortgage takers. These counselors also help with borrowers who are struggling to make their payments and are looking for a loan modification or short sell program. Borrowers who are looking for a HECM (Home Equity Conversion Mortgage), otherwise referred to as a Reverse mortgage, are obligated to go through a HUD counselor in order to guarantee that they completely understand the ramifications of a reverse mortgage.

Community based and Special housing projects: HUD oversees many community based housing projects, Indian Reservation projects and Hawaiian Land projects, just to name a few. One of the goals of HUD is to provide reasonable and affordable housing for needy Americans.

Joint Participation in MHA (Making Home Affordable) Program : One of the major housing relating programs during the Obama Administration is the MHA program, which is overseen by HUD and the Treasury Dept. The MHA program includes special FHA programs such as the FHA streamline refinance, FHA HAMP (modification) or FHA HAFA (foreclosure alternative) program.

However, HUD has extended the program into the conventional loan market by including Fannie Mae and Freddie Mac based loans into the program. This includes the HARP refinance loan program, HAMP loan modification program and the HAFA foreclosure alternative program.

Do I Deal Directly with HUD?

Your direct dealings with HUD are for general information, learning and counseling purposes.

Neither HUD nor the FHA is direct lenders. In order for a HUD (or FHA) lender to offer a HUD (or FHA loan), it must carefully follow all HUD underwriting guidelines. Like any other mortgage loan, those guidelines are very technical. Read information from the Web site, the HUD website, before you speak to your lenders. It is very important to prepare yourself properly before making a loan application.

Quick tip

get mortgage quotes on fha, va, or conventional home loans and home refinance loans from mortgage providers.

Mortgage market update: the latest

Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.

Mortgage rates April 3, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 3, 2024 is 6.82%. This represents a 3 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for April 3, 2024 is 6.11%. This is a 10 basis points decrease from last week’s rates.

What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for April 6, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:

  • 30-year conventional loan is 6.95%
  • 15-year conventional loan is 6.13%
    Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,847. A 15-year mortgage would require a monthly payment of around $2,374.

Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.