HUD financing is channeled through the U.S. Department of Housing and Urban Development (HUD) through a partnership of HUD-approved lenders. The agency doesn’t actually provide financing to buyers. The applicant must either secure financing from a mortgage lender or tap into their own savings. Once the required amount of funding is obtained, the individual is able to obtain any number of HUD-approved mortgages.

HUD Financing

To understand how HUD financing works is to first know what a HUD loan is. The loan, which is available through the Federal Housing Administration (FHA), is insured by HUD through a partnership with approved lenders should the buyer default on the loan or the property go into foreclosure. The loan typically has attractive features such as 35-40 year amortization and term, non-recourse, assumable loans, possibly lower equity participation, and approval to those with less than perfect credit. 

When working on the commercial loan side, HUD financing can be used to purchase, refinance or build investment properties. Two of the most popular areas of HUD mortgages are the multifamily program and the residential healthcare facilities program to provide access to much-needed similar capital for hospitals and senior housing facilities.

Howell Investment Finance in Ames, IA specializes in commercial loans obtained through the government lending program. Howell Investment Finance works with a strong network of commercial lenders from coast to coast to assist individuals with buying and refinancing a range of commercial investment properties. If you’re ready to learn more about commercial real estate financing, including HUD financing, Howell Investment Finance will walk you through the process! Call (515) 233-8228 or visit the website to schedule an appointment. In addition to Ames, the company serves Ankeny, Cedar Rapids, Des Moines and West Des Moines.