Selling HUD Homes

Who can purchase a HUD Home?
HUD Homes may be purchased by any individual, company, HUD-approved non-profit organization, or government entity that can secure financing or pay cash for the property. Interested buyers must submit bids through a HUD-registered real estate agent. A pre-qualification letter from a lender is required for buyers obtaining financing. Cash buyers are required to provide proof of funds for at least the amount of the purchase price. HUD will award the winning bid to the purchaser with the highest acceptable net to HUD. Winning bids are subject to completion and receipt of all required documentation by the asset manager.

Who can sell a HUD Home?
Any real estate broker registered with HUD, or real estate agent working for a registered broker, may facilitate the sale of a HUD Home. All brokers MUST be registered with HUD prior to submitting an electronic bid. Only licensed brokers/agents that are registered with HUD and have an active NAID (Name and Address Identifier) may submit these bids. For details on the registration process, please see Section 4.0 NAID Application Process and the NAID Registration page on Please note: Brokers will be required to renew their NAID registration with HUD annually. In addition, both the NAID-registered broker and the selling agent must also be registered to bid on www.HUDHome

Will HUD pay for any closing costs and the selling agent’s commission?
HUD will pay up to 3% of the purchase price in closing costs that are considered to be reasonable and customary in the jurisdiction where the property is located. Closing costs should be entered on Line 5 of the Sales Contract. HUD will pay the lesser of the amount requested on either Line 5, or the actual closing costs. Any funds remaining after the allowable closing costs have been paid will not be credited to the buyer at closing. Review the Forfeiture and Extension Policy addendum to the sales contract package for the list of closing costs that will be paid by HUD. HUD also allows, and will pay, up to 3% of the purchase price (or $1,250, whichever is greater) for the selling agent’s commission, which should be entered on Line 6a of the Sales Contract. Line 6b denotes the Local Listing Broker’s commission, which is 3% of the purchase price or $1,250, whichever is greater. Note that higher closing costs and commissions will reduce the net to HUD, and may affect the competitive bidding ratio. Only the selling agent may choose to reduce his/her commission; the LLB commission may not be reduced. HUD does not pay any closing costs or commissions on Good Neighbor Next Door (GNND) properties. Please note that even though GNND participants are required to utilize a real estate agent to submit their bids, HUD will not pay the selling agent commission; however, if FHA financing is used, the purchaser may add closing costs and commissions to their loan.

Please also note that an active NAID is not required to show HUD homes, but is required to submit bids on HUD Homes.

When are new and relisted properties released for sale?
Please visit frequently for the latest HUD inventory.