Contrary to popular belief HUD (Housing and Urban Development) does not mean low income. HUD now insures mortgages beyond the 700,000 dollar mark. HUD does a great deal more than single family homes in the poorest part of town. HUD is an essential part of our housing market. Without HUD the average cost of a down payment would be out of the reach of most Americans. This is not to be confused with Subprime mortgages that created more problems than solutions.

Because HUD had been in operation for decades they had only a small part of the negative wave that took down many a home owner. HUD knew different and because HUD is part of the government they were not enticed to issue loans that had little chance of being paid back. In fact HUD mortgages which became unpopular during the subprime boom did so because they did not have to answer to their board of directors thereby not changing its regulations in the hopes of keeping up with the rest of the mortgage industry.

In fact HUD increased the required down payment percentage during the height of the subprime meltdown. It is hard to say it but the government got it right while Wall Street got it so wrong that it will always be a black mark on their records.

So don’t think of HUD as lower income opportunities for poor people that have no other option. HUD is an opportunity for all Americans to realize the American Dream…without the Nightmare of Subprime mortgages.