• HUD mortgages are processed through the Federal Housing Administration.neighborhood homes image by Wendi Evans from Fotolia.com
  
  The Department of Housing and Urban Development (HUD) offers affordable living to Americans by providing, improving and developing American communities. HUD purchases foreclosed homes and transforms them into one-to-four unit residential homes for purchase. HUD resells these homes to recover the losses of foreclosure. Homes for sale are found on Internet listing sites contracted by HUD. Qualifying buyers receive loans through the Federal Housing Administration (FHA) to insure lower down payments, closing costs and easier credit qualifications.
  
  

FAQ about HUD Mortgage Insurance

• The Federal Housing Administration (FHA) provides housing insurance so an owner may purchase or refinance a residence. Mortgages are funded by a lender, such as a bank, institution or mortgage institution and insured by HUD. According to the HUD, borrowers are eligible for 96.5 percent financing and are allowed to finance the mortgage insurance premium into the mortgage. Borrowers must qualify and meet the FHA credit standards.
  
  

FAQ about HUD 203(K) loans

• When home owners want to purchase a home for modernization, they first have to finance the construction, then receive a permanent loan to pay off any interim loans. 203(K) loans allow owners to receive one, long-term, fixed-rate loan to finance the acquisition of a home and its repairs. To be eligible, homes must be one-to-four family dwelling completed for at least one year.
  
  

FAQs about HUD Reverse Mortgage

• HUD home owners qualifying for a reserve mortgage can convert a portion of their equity into cash. No payment is required until the homeowners no longer uses the home as their principle residence. To qualify your home must be a FHA home, be a single-family home or a one-to-four residential home occupied by a borrower.