"I am delighted to join the Rattler family," Wood said in a news release. "I am thoroughly convinced that ... we can build a competitive football program that will play a positive role in helping FAMU enhance its brand and achieve its mission of becoming a best-in-class academic institution."
Wood started at Buffalo in 2011 and was named interim head coach in October. The Bulls had the No. 3 scoring offense in the Mid-American Conference last season.
The 59-year-old Wood has a diverse background with 30 years of coaching experience spanning both the college ranks and the NFL.
"I'm excited about being able to name a coach with the experience, success and qualifications of Coach Wood," Townsend said.
Wood was part of two national championship teams as Miami running backs coach from 1989 to 1993 before moving on to serve as the Wake Forest offensive coordinator from 1993-94. He then became head coach at James Madison from 1995 to 1998.
Wood, who becomes the 17th coach in the program's history, replaces Earl Holmes, who was fired after going 6-16 in 22 games.
The Associated Press contributed to this report.