HUD-Insured Loans

HUD-insured loans are mortgage loans backed by the U.S. Department of Housing and Urban Development (HUD). They primarily refer to Federal Housing Administration (FHA) loans, which provide mortgage insurance to lenders, reducing their risk. This insurance allows more people, especially those with lower incomes or less-than-perfect credit, to qualify for homeownership with lower down payments and more flexible qualification criteria. The borrower still repays the loan like any other mortgage, but the FHA insurance helps lenders feel secure in approving loans that might otherwise be riskier.