HUD (U.S. Department of Housing and Urban Development)
HUD is the federal government agency that oversees housing policy, administers the FHA loan program, enforces fair housing laws, and provides housing assistance to low-income Americans. When mortgage professionals say 'HUD,' they often refer to FHA loans, the HUD-1 settlement statement, or HUD-approved housing counselors who provide free financial guidance to homebuyers.
HUD was established in 1965 and today manages a wide range of programs. Its most consumer-visible role in mortgage lending is administering the FHA mortgage insurance program, which has helped millions of first-time buyers purchase homes since 1934. HUD also enforces the Fair Housing Act, which prohibits discrimination in housing sales, rentals, and lending based on race, color, religion, national origin, sex, disability, and familial status.
HUD-approved housing counselors provide free or low-cost advice on buying, renting, foreclosure prevention, and credit improvement. Finding a counselor at 1-800-569-4287 (HUD's hotline) or at hud.gov is one of the best resources for first-time buyers and homeowners facing financial hardship. Unlike real estate agents or lenders, HUD counselors have no financial incentive to push you toward any particular product.
The HUD-1 Settlement Statement was the official closing document before it was replaced by the Closing Disclosure in 2015. You may encounter the term in older transactions or when working with attorneys in states that still use it for certain transactions.
Key Takeaway
HUD is the federal government agency that oversees housing policy, administers the FHA loan program, enforces fair housing laws, and provides housing assistance to low-income Americans. When mortgage professionals say 'HUD,' they often refer to FHA loans, the HUD-1 settlement statement, or HUD-approved housing counselors who provide free financial guidance to homebuyers.
Related Terms
Frequently Asked Questions
HUD insures FHA loans through the Federal Housing Administration, enforces fair housing laws, and provides housing counselors who offer free advice to homebuyers and distressed homeowners.
A free or low-cost advisor certified by HUD who helps with homebuying decisions, mortgage counseling, and foreclosure prevention. Find one at hud.gov or call 1-800-569-4287.
It was the settlement statement used at mortgage closings before 2015, replaced by the Closing Disclosure under TRID regulations.
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