HUD/FHA

A HUD / FHA loan is a mortgage issued by an FHA (Federal Housing Authority) approved lender and insured by the FHA. FHA is a federally guaranteed program under the government ’ s Depar tment of Housing and Urban Development (HUD). FHA is the not the lender but rather guarantees the loan to a lender. The lender bears less risk because the FHA will pay a claim to the lender if the borrower defaults on their loan. FHA loans are available for multifamily and healthcare properties. The FHA’s multifamily division facilitates financing for the acquisition, refinance, construction and renovation of traditional and affordable multifamily properties, senior living, cooperatives, student housing, and manufactured housing communities. Borrowers must have previous FHA ownership or management experience if they are managing the property themselves or they must hire an FHA approved property manager unless a waiver is obtained.