What is a HUD-Held Loan?

HUD-Held Loan Definition

A HUD-held loan is an FHA-insured loan that is now owned by HUD. Typically, this occurs when a borrower has defaulted on their loan and HUD decides to purchase the loan from the lender. In some cases, HUD will provide debt service relief to the property for a certain period of time, while creating a work-out plan to stabilize the property financially.


To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.