HUD Can Help You Buy a Home

U.S. Department of Housing and Urban Development (HUD) & Federal Housing Administration (FHA) programs

Many Americans dream of owning their own homes, but few families are able to pay cash for them.  Many people who could not otherwise afford to own a house become homeowners with the assistance of U.S. Department of Housing and Urban Development (HUD).  Many Kentuckians are acheiving home ownership through HUD.

FHA Loans
HUD provides several paths to homeownership.  Helping people secure financing for their homes is one of the chief purposes of FHA.  FHA is the Federal Housing Administration and is a part of HUD.  FHA single family mortgage insurance programs allow a homebuyer to make a modest down payment and obtain a mortgage from a HUD approved lender for the balance of the purchase price.  The mortgage loan is made by a bank, savings and loans association, mortgage company, credit union or other HUD approved lender.  FHA (HUD) insures the loan and pays the lender should a borrower default on the mortgage.  Because the lender is protected by this insurance, it can offer more liberal mortgage terms than a prospective homeowner might otherwise obtain.  While there are no income limits on applicants for FHA mortgages there are maximum mortgage limits that FHA (HUD) will insure. 

HUD Grants
Another path to homeownership that HUD provides is through HOME program funds and Community Development Block Grants.  These funds and grants are provided to the state and local communities throughout Kentucky.  Each governmental entity that receives this funding can create homeownership programs, within guidelines, that will meet the needs of their communities.  These programs are available to perspective homebuyers that meet income requirements as well as other requirements.  Depending on how the local government has structured their programs, HUD funds may be used for down payment assistance, closing costs, or other forms of assistance.  The government agencies that serve the Louisville and Jefferson County area are: 
             Kentucky Housing Corporation (KHC) (1-800-633-8896)
             Louisville Metro Department of Housing (502-574-3107)

For information and requirements for these programs, please contact the above listed governmental agencies.

Find out more about HUD’s FHA home buying programs in Kentucky by visiting HUD’s Kentucky Office website.