U.S. Department of Housing and Urban Development (HUD)

The U.S. Department of Housing and Urban Development (HUD) is a federal agency focused on expanding access to safe, affordable housing and supporting community development. Created in 1965, HUD’s work includes enforcing fair housing laws, providing housing assistance and grants, supporting mortgage markets through the Federal Housing Administration (FHA), and coordinating with local agencies and nonprofit partners.

Core functions

• Enforce the Fair Housing Act to prevent discrimination in renting, buying, lending, advertising, and other housing-related activities.
• Administer major federal housing programs and grants to support low- and moderate-income households.
• Promote community development, disaster recovery, and efforts to reduce homelessness.
• Conduct research and policy analysis to inform housing programs and decisions.
• Partner with local public housing agencies (PHAs), nonprofits, private developers, and lenders to implement programs at the state and local levels.

Major HUD programs and offices

Office of Housing

• Includes the Federal Housing Administration (FHA), which provides mortgage insurance that helps lenders offer loans to borrowers who might not otherwise qualify.
• Oversees manufactured housing programs, project-based rental assistance, housing for the elderly and people with disabilities, and housing counseling.
• Supports programs that recapitalize aging affordable housing stock (for example, Rental Assistance Demonstration).

Community Development Block Grant (CDBG) program

• Provides federal grants to states, cities, and local organizations to develop neighborhoods with decent, affordable housing and services.
• Funds projects that benefit low- and moderate-income residents and improve access to jobs, transit, and grocery stores.

Housing Choice Vouchers (Section 8)

• Vouchers help low-income, elderly, and disabled households rent privately owned housing that meets health and safety standards.
• Local PHAs administer vouchers, pay a subsidy to landlords, and set tenant eligibility and payment standards. Tenants pay the difference between the subsidy and the contracted rent.
• Eligibility is income-based (typically tied to area median income) and vouchers aim to preserve mobility so families can move without losing assistance.

Office of Public and Indian Housing (PIH)

• Ensures access to safe, decent, affordable housing in public and tribal housing programs.
• Works to create opportunities for resident self-sufficiency and oversees public housing developments serving low-income families, older adults, and people with disabilities.

Office of Community Planning and Development (CPD)

• Promotes integrated strategies for decent housing, suitable living environments, and expanded economic opportunities for low- and moderate-income households.
• Builds public–private partnerships to carry out community development initiatives.

Office of Policy Development and Research (PD&R)

• Conducts research on housing needs, market conditions, and program effectiveness.
• Provides data and analysis to inform HUD policy and program design.

Ginnie Mae

• Guarantees timely payment of principal and interest on mortgage-backed securities that are backed by federally insured or guaranteed loans, which helps channel capital into affordable housing.
• Does not buy or sell loans or issue securities directly; its guaranty enhances liquidity in the secondary mortgage market.

How HUD works with partners

HUD sets policy, provides funding and technical assistance, and enforces regulations, while implementation is often carried out by:
* Local public housing agencies (PHAs)
* Lenders approved to originate FHA-insured loans
* State and local governments
* Nonprofits and faith-based organizations
This decentralized approach lets HUD target assistance to local needs while maintaining federal standards.

FAQs

Are Fannie Mae and HUD the same?
No. Fannie Mae is a government-sponsored enterprise (GSE) that supports the conventional mortgage market. HUD is a federal agency that administers housing programs and enforces fair housing laws.

Does HUD make loans directly?
No. HUD does not make mortgage loans directly to borrowers. FHA-insured loans are issued by approved private lenders; FHA insurance provided through HUD reduces lender risk and expands access to credit.

How do you qualify for an FHA or HUD-related mortgage?
Qualification criteria are similar to other mortgages: acceptable credit history and score, sufficient income, a manageable debt-to-income ratio, and required down payment. Specific limits and program rules vary, so prospective borrowers should consult FHA-approved lenders or HUD resources.

Conclusion

HUD plays a central role in promoting affordable housing, enforcing fair housing protections, and supporting community development through grants, vouchers, mortgage insurance, and research. Its programs aim to increase housing stability, expand opportunities for low- and moderate-income households, and work with local partners to implement solutions tailored to community needs.