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HUD has a large inventory of homes in every state that they have foreclosed on resulting in HUD owning these homes. These are all 1 – 4 unit residential properties.

Started in 1965, HUD is a department of the United States federal government. Its full name is The Department of Housing and Urban Development. HUD has many roles. One of the main purposes of HUD is to create more quality and affordable housing in America. In addition, HUD’s mission is to prevent housing discrimination based on race, sex, color, nationality, and religion through the fair housing act. Also, HUD facilitates rent subsidies for very low income individuals and families through Section 8 Vouchers, and Public Housing Programs. Natural disaster relief through FEMA is another of HUD’s roles. HUD is also well known for overseeing FHA loans for homeowners, with low rate high loan to value loans. The purpose of this division is to give more Americans the ability to own a home. HUD does not make the loans, but rather guarantees the mortgage making it possible for FHA lenders to take a risk that they would not otherwise take. On the mortgage side, HUD also oversees an apartment building program enabling investors of commercial real estate to build, purchase and refinance apartment complexes. These multifamily HUD loans have very low 30 to 40 year fixed rates. To find out more about all of HUD’s programs you can go to their website:


Buying a HUD Foreclosed Home

HUD has a large inventory of homes in every state that they have foreclosed on resulting in HUD owning these homes. These are all 1 – 4 unit residential properties. You can usually get these below their fair market value as they are offered for sale to recover the loss of the defaulted loan. These homes are first offered to owner occupied buyers, but if they are not sold within, a reasonable amount of time can be offered for sale to investors. 

To buy a HUD foreclosed home you can get prequalified by a bank or mortgage broker in the same way you would to purchase any home. You can apply for a HUD insured FHA loan if you like through a mortgage broker. Quite often, these homes are in need of repair so getting a property condition report is very helpful. HUD sells these home in as is condition so be prepared to fork out some additional cash to bring the property into good condition. You can use a HUD insured FHA 203(k) Loan if you want to include the cost of repairs or remodeling in the loan. To search for a FHA lender you can go to this website:

For more info on how to buy a HUD foreclosed home go to this website:

To find a HUD foreclosed home to buy in your state go to this website:


HUD Section 8 Housing Voucher Program

Section 8 Housing Vouchers can be used to subsidize rents for very low-income individuals and families. These vouchers can be used for single-family residential rental homes and apartments. Also known aas Housing Choice Vouchers, they are paid for by HUD, but administered by local Housing Agencies. Once these vouchers are obtained, the low-income family can choose a rental unit of their choice that accepts Section 8 Vouchers. These rental units will first have to be approved by the housing authority for being safe, sanitary, and in good condition. 

HUD on the federal level sets income limits that determine eligibility for this program. HUD keeps current data on market rents in all submarkets in America. From this data base they set income limits based on medium income in each sub-market. Many low income seniors living solely on Social Security benefits depend on this program under HUD Section 202. Also, many disabled citizens rely on housing vouchers to pay their rent under HUD Section 811.

To locate a Housing Agency near you where you can apply for a Section 8 Voucher: is external)

To find out  more about the HUD Section 8 Choice Voucher Program:


HUD Public Housing Program

HUD created the Public Housing Program to provide safe, clean, good condition housing for low income families. The housing can be in anything from a single family home to an entire large apartment building of 100 units or more where all the rents are subsidized.

You must be a US Citizen, Resident Alien or have approved immigration status, and have good rental references to apply for HUD Public Housing. Your rent will be based on your annual verified income.  For more information:


HUD FHA Apartment/Multifamily Loans

223(f) and 221(d)4

This is the very best loan program in America for new construction, substantial rehabilitation, purchasing, or refinancing apartment buildings of 5 units or more. HUD Multifamily loans are unbeatable in that they have the lowest long term fixed rates – fixed for 30 to 40 years and have a 30 to 40 year amortization. Furthermore, these loans are non-recourse not requiring a personal guarantee from the owners or developers on the mortgage.

It is an inaccurate concept that HUD only supports financing on low income or affordable apartment complexes. About 90% of all HUD Multifamily/Apartment building loans are on market rent properties. 

HUD/FHA apartment loan interest are very low because HUD guarantees these loans with mortgage insurance. The issuance of mortgage insurance allows these loans to be sold as Gennie Mae (GNMA) bonds on Wall Street. These bonds carry the full faith and credit of the United States Government which makes them very attractive to low risk investors both nationally and internationally. 

Apartment Loan Store has specialized in HUD/FHA apartment loans since 1999 in all 50 states. Call one of our financing specialists to find out more about the program at 503-376-7303.

For more info and loan guidelines on HUD Apartment Loans go to: