Tag: IPC

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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Compliance – Fannie Mae Lender Incentive Limits for Borrowers: Many of our competitors are offering incentives like gift cards with a value over the $500 limit for conventional lender incentives. Did this change?

Answer: First things first:  You are not missing an update.  In today’s ultra-competitive market, it is very likely that lenders of all shapes and sizes are ‘pushing the envelope’.  Sometimes they are playing by all the rules, sometimes they are not.  If a lender chooses to give more than what the selling guide allows for, […]

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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 […]

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