The U.S. Department of Housing and Urban Development (HUD) is the federal agency that works to make housing safer, more affordable and more accessible for Americans. Created in 1965, HUD oversees programs that help renters, homeowners and communities—especially those facing financial hardship or housing instability.
For mortgage borrowers, HUD matters because many of its programs directly influence home affordability, down payment options, repair financing and fair housing protections.
Are you searching for an affordable loan? Newrez carries a variety of options to suit your circumstances, including FHA loans. Reach out to one of our mortgage experts today.
What Does HUD Do?
HUD shapes national housing policy and funds many programs that support American households. Its work includes:
- Supporting homeownership through FHA‑insured mortgages
- Enforcing fair housing and anti‑discrimination laws
- Funding local housing authorities
- Investing in neighborhood development
- Expanding affordable rental housing
- Reducing homelessness
For mortgage borrowers, HUD’s biggest impact is through FHA loans, down payment assistance programs and protections that ensure fair access to housing.
HUD Housing Programs Explained
HUD runs a wide range of programs, including programs for homeowners, renters and for people experiencing homelessness. Different programs have different eligibility standards that may include but are not limited to:
- Income limits based on Area Median Income (AMI)
- Household size and composition
- Citizenship or eligible immigration status
- Credit, employment, or financial readiness requirements (varies by program)
- Local Public Housing Agency or state/local program rules
- Completion of required counseling or education courses (common for homebuyer programs)
Below we’ll summarize a few programs most relevant to homebuyers and homeowners.
FHA‑Insured Mortgage Programs
HUD oversees the Federal Housing Administration (FHA), which insures mortgages for borrowers who may not qualify for conventional loans. FHA loans offer:
- Low down payments (as low as 3.5%)
- Flexible credit and debt-to-income requirements
- Fixed- and adjustable-rate mortgage options
- Allows the use of gift funds for the down payment
Additionally, the FHA 203(k) Rehabilitation Loan enables homeowners to fund necessary home repairs and roll those costs in with their regular mortgage payment. Learn more.
For many borrowers, FHA may provide the most accessible path to homeownership. Learn more about FHA loans offered by Newrez.
FHA Title I Property Improvement Loan Program
This program helps homeowners finance essential home repairs and improvements separate from a home purchase or refinance. It’s designed to support housing quality and livability. These loans can be used for:
- Accessibility improvements
- Energy‑efficiency updates
- Safety upgrades
Loan amounts can go up to $25,000 for single‑family homes.1
Because Newrez is a mortgage company, we don’t offer Title I loans, but we do offer renovation loans that allow you to roll repair costs into a mortgage payment.
Housing Choice Voucher Homeownership Program
This program allows eligible low‑income families who already qualify for Housing Choice Vouchers to use their voucher toward monthly homeownership costs instead of rent.
- Helps cover key expenses such as mortgage payments, property taxes, insurance and certain maintenance costs, depending on local program rules.
- Requires participants to meet income, employment, and homeownership counseling requirements, ensuring families are prepared for long‑term success.
- Designed to expand pathways to stable homeownership for families who might not otherwise be able to purchase a home.
This program is administered by local Public Housing Agencies (PHAs) and it is only offered in select locations. Each PHA sets its own guidelines so availability and requirements may vary by community. If you’re interested, contact your local PHA to confirm whether the program is offered in your area and if Newrez is an approved lender.
HOME Investment Partnerships Program
HOME provides funding to states and cities to build or preserve affordable housing. Funds are administered locally and support causes including but not limited to:
- Down payment and closing cost assistance
- Rental assistance
- Rehabilitation of older homes
HOME funds may be used locally to support first-time homebuyers by helping to bridge affordability gaps.
Other HUD programs include:
- Community Development Block Grant (CDBG) Program: Funds local projects that improve housing and neighborhood conditions, such as infrastructure upgrades and community facilities.
- HUD-VASH (Veterans Housing Assistance): Combines HUD rental vouchers with VA case management to help veterans experiencing homelessness secure stable housing.
- Emergency Solutions Grants (ESG): ESG funds homelessness prevention, emergency shelters, and rapid rehousing services—helping families avoid displacement during financial crises.
- Supportive Housing Programs for Special Populations: HUD offers funding meant to help seniors and people with disabilities live independently with the support they need.
Why HUD Matters to the U.S. Housing System
HUD plays a central role in keeping housing accessible and stable for millions of Americans. For homebuyers and homeowners, HUD’s programs can:
- Lower the cost of buying a home
- Provide repair financing
- Support affordable housing in local communities
Understanding some of the programs HUD provides could help some borrowers make informed decisions about homeownership, financing options and available assistance.
Wondering how much house you might be able to afford, or how renting compares with the cost of buying a home? Explore our calculators to get a clearer picture of the cost of homeownership. And if you’re ready to secure a loan, reach out to our mortgage experts today and we’ll be glad to talk about your options.
References:
1 ti_pi_allowloanpar.doc (HUD)
