Interested Party

FHA – Listing Agent Closing Cost Assistance: Can a listing agent contribute to the buyer’s closing costs if we stay within the IPC [Interested Party Contribution] guidelines? [Interested Party Contribution Chart]

Answer: Yes.  The selling agent can contribute to the buyer’s closing costs as long as the contribution complies with the Interested Party Contributions guideline shown below. Reference: 4000.1 II. A. 4. d. iii (G) Interested Party Contributions (TOTAL) (1) Definition: Interested Parties refer to sellers, real estate agents, builders, developers or other parties with an interest in [...]

2019-04-19T16:41:18-05:00April 24th, 2019|

Fannie Mae – Real Estate Agent Borrower – Commission Usage: When a real estate agent is also the buyer, can their commission earned on that sale go towards their down payment and closing costs?

Answer: Fannie Mae restricts the use of commission for down payment but could use the commission for closing costs. And yes, the agent / borrower should be able to show sufficient funds to close without counting the commission. That use of the commission for closing costs would count towards the limit on interested-party contributions.  The [...]

2019-02-25T10:52:59-05:00February 25th, 2019|