FHA vs HUD
The HUD (Housing and Urban Development) and the FHA (Federal Housing Administration) helps with the buying and selling of homes. People use both these terms without understanding their real meanings. Both the FHA and HUD make it possible for low-income individuals to own a home of their own. The FHA and HUD are very closely related, and that makes it hard to distinguish between the two.
The United States Secretary of Housing and Urban development administers the Housing and Urban Development. The Federal Housing Administration is a part of the HUD.
HUD was established in 1966, after the Department of Housing and Urban Development Act became a law in 1965. The FHA was established as a part of the National Housing Act, of 1934. However, the Federal Housing Administration became a part of the HUD in 1965.
Well, one of the main differences that can be seen between the FHA and the HUD, is that the former works with individual buyers and the later one pertains to multi-family and commercial housing loans.
Amongst the HUD loans, the Federal Housing Administration is considered to offer the best loans for buying homes. The FHA loans are more flexible than the other conventional loans provided by the HUD. The Federal Housing Administration loans also offer a low down payment, easy credit qualifications, and low closing rates, which make them the most sought after housing loans.
As the Federal Housing Administration is only a part of the Housing and Urban Development, the former does not have a separate inspection program. All the inspectors belong to the HUD.
Summary
1. One can hardly find a difference between the HUD (Housing and Urban Development) and the FHA (Federal Housing Administration), as they are very closely related.
2. The Federal Housing Administration is only a part of the Housing and Urban Development. The FHA became a part of the HUD in 1965.
3. The FHA mainly helps individuals to own homes. On the other hand, HUD pertains to multi-family and commercial housing loans.
4. HUD was established in 1966, after the Department of Housing and Urban Development Act became a law in 1965. The FHA was established as a part of the National Housing Act, of 1934.
5. Amongst the HUD loans, the Federal Housing Administration is considered to offer the best loans for buying homes. They offer a low down payment, easy credit qualifications and low closing rates.