You should speak to a local and trusted mortgage company in your area to see what you qualify for. They will be able to explain to you the different type of loans available with your credit and your financial situation. it is important to do this first, prior to looking at properties. once you know what type of loan you will need, then you can check to see if that house meets the qualifications. You may be refferring to an FHA loan as hud is the organazation that oversees everything. Good luck with purchasing.