Interest-only fixed rate loans are loans in which the borrower pays only interest at a fixed rate and nothing towards the principal of their mortgage loan. Interest-only fixed rate loans are a component of certain HUD multifamily loan programs, such as HUD 221(d)(4) loans for the construction and substantial rehabilitation of multifamily properties.
HUD-held loans are loans that were originally insured by HUD, and are now owned by HUD itself. HUD-held loans are different than HUD-owned properties, as these are properties in which the title of the property is now held by HUD as the result of a borrower foreclosure.
HUD-approved lenders are those that can offer HUD multifamily financing and other HUD-insured home loans to borrowers. In order to qualify to become a HUD-approved lender, a lender must meet specific requirements, including having a specific net worth, maintaining good credit, and having employees with a certain amount of experience in the mortgage industry.
Ginnie Mae (Government National Mortgage Association - GNMA) guarantees payments on mortgage backed securities consisting of pools of government-insured loans, including HUD 223(f) loans. While Ginnie Mae guarantees repayment on the MBS, it does not issue, sell, or buy securities itself and does not purchase mortgages.