The troops opened fire when a car pulled up outside the house during their search.
A local hospital reported that five people were killed.
The search for Saddam and his followers has been stepped up since his sons Uday and Qusay died in a raid last week.
It's thought the troops were looking for one of Saddam's other sons, Ali, in this latest raid.
'Matter of time'
The hunt for Saddam himself is also going strong.
America's top military officials said it was "just a matter of time" before the former leader was found.