The FHA Loan

If you look in webopedia for a definition of HUD it will feed you the following definition:

“Short for Heads Up Display in video and computer games. HUD is the display area where gamers can see their character's vital statistics such as current health, bonus attributes, armor level, ammunition count, and more.”

Wrong HUD. For purposes of home buying, HUD refers to The U.S. Department of Housing and Urban Development. It is a government agency established to help Americans in home ownership. Their mission statement reads like this: "HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management and accountability and forge new partnerships--particularly with faith-based and community organizations--that leverage resources and improve HUD's ability to be effective on the community level."

Like many people I was surprised to learn that, through the Federal Housing Administration (aka FHA), HUD is the largest mortgage issuer in the world. FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.

For more information, you can visite www.fha.gov.