text: A HUD loan is a loan for a HUD house, in most cases.  A HUD loan is a government subsidized and funded loan.  In most cases, qualifying for these types of loans can be fairly difficult.  On the positive side, the terms can be quite attractive.  In most situations however, the average person is better off obtaining a regular old "conforming" mortgage loan. The qualification process is easier and there are more types of loans to choose from.