When it comes to purchasing a home, many buyers turn to government-backed loans to help make their dream of homeownership a reality. One such program is the Federal Housing Administration (FHA) loan, which is backed by the Department of Housing and Urban Development (HUD). However, these loans come with a number of requirements, including a repayment agreement. In this article, we’ll take a closer look at what a HUD repayment agreement is and provide a sample to better understand the process.

What is a HUD repayment agreement?

A HUD repayment agreement is a legally binding contract between the borrower and the lender that outlines the terms for repayment of a government-backed loan. Specifically, the agreement spells out a plan to repay the debt in an affordable and manageable way. This is particularly important for borrowers who may be struggling to make their mortgage payments due to financial hardship, making a repayment plan essential for keeping their home and avoiding foreclosure.

Why is a HUD repayment agreement necessary?

A HUD repayment agreement is necessary to help ensure that borrowers are able to repay their loans in a timely and affordable manner. These agreements are particularly important for borrowers who may be experiencing financial difficulties such as job loss or a medical emergency, as they outline a plan that allows them to repay the debt without defaulting or going into foreclosure.

What does a HUD repayment agreement include?

A HUD repayment agreement typically includes the following:

– The total amount owed, including principal, interest, and any fees

– The borrower’s current financial situation

– The borrower’s ability to pay

– The agreed-upon repayment plan, including the amount and frequency of payments

– The consequences of failing to adhere to the repayment plan

Sample HUD repayment agreement

[Name of Borrower]


[City, State ZIP Code]


[Name of Lender]


[City, State ZIP Code]

Dear [Name of Lender],

I am writing to request a repayment plan for my federal housing loan, which I obtained through the Department of Housing and Urban Development (HUD). Due to [insert reason for hardship, such as job loss or medical emergency], I am currently unable to make my mortgage payments.

I am working to get back on my feet, and I believe a repayment plan will help me avoid foreclosure and keep my home. I propose the following repayment plan:

– I will make monthly payments of [insert amount] for [insert number of months] to pay off my outstanding debt.

– I will provide proof of income and expenses to show that I am making a good faith effort to repay the loan.

– You may contact me at any time if you have any questions or concerns about the repayment plan.

I understand that failing to adhere to this repayment plan could result in foreclosure, and I am committed to making my payments on time and in full. Thank you for considering my request.


[Your name]

Once the borrower and the lender agree to the repayment plan, it must be signed by both parties and becomes a legally binding contract. This agreement should be kept in a safe place, as it will serve as a reference for both the borrower and the lender throughout the repayment period.

In conclusion, a HUD repayment agreement is an important tool for borrowers who are struggling to make their mortgage payments. By outlining a clear and manageable repayment plan, borrowers can avoid defaulting on their loans and facing foreclosure. If you’re a borrower in need of a repayment plan, don’t hesitate to reach out to your lender today.