HUD:housing urban development

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valentino

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Am I understanding this correctly?HUD is a government funded program.The build affordable housing for People.Contractors are paid by federal or state funds to build houses.Putting people to work.People who need housing but can’t invest a lot to buy are given low cost morgages spread out of long periods of time.the government must insure these morgages.Its said this improves inner city neighborhoods.HUD says they collect taxes from these workers so we obtain revenue.My question-the state pays the contractors so it comes from our tax dollars.the people taking out morgages need government help to pay for long term loans so the tax payer must be paying for that also.The revenue collected from the workers from taxes which goes back into the system.Now tell me how the country profits from such an arrangement?Am I missing something?
 
HUD is involved in a great many aspects of housing. The only part that I am familiar with, is that they insure home loans. That is, private lenders (banks or savings banks or mortgage companies) make loans to home buyers. The lenders do not wish to lose money when a default occurs. HUD, through is FHA division, insures the lender against loss. Of course, the insurance also makes the loans more attractive to be pooled with other loans into securitized loan pools.

I’m thinking that the majority of home loans are now insured by the government in one way or another, (HUD, VA, Freddie Mac, Fannie Mae). The net effect, in my view, is to artificially inflate the housing market and housing prices. But, that bubble has burst.

Making a government insured home loan is a no lose proposition. If there is a loss, it will be covered by the taxpayers, and not affect the loan holder.
 
valentino said:
Am I understanding this correctly?HUD is a government funded program.
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No, HUD is an federal agency. The agency funds programs through grants.
valentino said:
The build affordable housing for People.Contractors are paid by federal or state funds to build houses.Putting people to work.People who need housing but can’t invest a lot to buy are given low cost morgages spread out of long periods of time.the government must insure these morgages.Its said this improves inner city neighborhoods.HUD says they collect taxes from these workers so we obtain revenue.My question-the state pays the contractors so it comes from our tax dollars.the people taking out morgages need government help to pay for long term loans so the tax payer must be paying for that also.The revenue collected from the workers from taxes which goes back into the system.Now tell me how the country profits from such an arrangement?Am I missing something?
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I don’t understand your question.
 
1ke said:
No, HUD is an federal agency. The agency funds programs through grants.
Grants come from companies or individuals.do they expect a return?

I don’t understand your question.
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