Tag: IPC

Seller-Paid Special Assessment and IPC Rules

Question: Our client is purchasing a condo with a special assessment of $16,000 due 2 weeks after closing.  Our sales contract states that the seller will pay this assessment, but we are concerned this may be viewed as an Interested Party Contribution.  What is your opinion?  MC Chart – Interested Party Contributions Answer: Yes, this […]

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USDA Identity of Interest

Question: Does USDA have guidelines on Identity of Interest? Answer: USDA has no specific regulations with regard to identity of interest. It’s a zero-down loan and since the seller can contribute up to 6% of closing costs, identity of interest is not an issue as in the case of an FHA loan. [Article Published in […]

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Fannie & Freddie – Real Estate Agent Commission as a Down Payment

Question: My real estate agent would like to gift her commission to her husband who is purchasing the property she sold to him, and he wants to use this as a down payment.  Will Fannie Mae or Freddie Mac allow this? Real Estate Agent as the Borrower – Commission Uses Chart & Gift Funds & […]

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Use of Commission Income for Closing Costs for Realtor Purchase

Question: If a real estate agent is also the buyer, can their commission be used for either down payment or closing costs? – Interested Party Contributions – Chart – NEW MTP™ – Real Estate Agent As the Buyer – How Can Your Commission Be Used to Buy a Property? Answer: Fannie Mae will restrict the […]

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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 […]

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