What is the Buyer Select Program?

On January 22, 2013, HUD launched a "Buyer Select" closing agent pilot program for HUD Owned properties.
In an effort to determine potential cost savings to the FHA MMI fund, FHA identified several areas in which it piloted under the Buyer Select Program.

Given the success of the Buyer Select pilot program, HUD will continue to assess each area on a case-by-case basis to determine if Buyer Select is to be implemented. Under the Buyer Select Program, the buyer selects their own closing entity and is not required to close with HUD contracted closing agents. This approach is more in line with current industry standards and will benefit the agency in time and money spent in managing contracts.

All buyers whose contracts are executed in a Buyer Select area will have the opportunity to select their own settlement company.
The selling agent will be required to complete an addendum providing the name and contact information of the selected settlement company. This addendum must be submitted with the sales contract package at the time of bid acceptance.

Buyers will still have the option of using the previously contracted closing agents; however HUD will no longer pay the settlement fee.

Please note that Listing Brokers may not refer buyers or agents to specific settlement companies, unless they are acting as dual agents, as this would be a conflict of interest.

If you have further questions pertaining to the Buyer Select Program and how it works please contact the FHA Resource Center 1-800-CALL-FHA (1-800-225-5342) or email

For more information on Buyer Select or HUD Homes please visit


HUD Policy



All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.