If you are a buyer who is interested in buying a HUD home, then you need to know that not all real estate agents can represent you on your purchase. The Federal Housing Administration (FHA) is a part of the Department of Housing and Urban Development (HUD). The agency provides federal mortgage insurance to ensure that mortgage lenders will be reimbursed in the event homebuyers default on a mortgage.

Only a registered real estate broker can sell HUD properties. The difference between a real estate agent and a real estate broker is discussed in another tip on this site. The broker must sign HUD's Selling Broker Certification forms. Once completed, the broker can show, advertise, and make offers on HUD Homes. HUD pays the broker a commission of up to 5% of the selling price.

It is always best to compare several different real estate agents before making your final selection. You'll quickly learn which are the most knowledgeable and able to help. If you are interested in a HUD home, ask your agent if his or her broker is registered to sell HUD properties. If the broker isn't registered, then look for another agent.

You can learn more about real estate brokers and HUD properties by going to the HUD web site.