Tag: real estate agent

Requiring Tax Returns on a Part-Time Real Estate Agent NOT Using the Income

Question: My client has a full-time job and does real estate on the side.  We are not counting any income from real estate, but my underwriter is insisting on the tax returns for this income.  Does FHA require the underwriter to evaluate the self-employed income if we are not using it to qualify the borrower? […]

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FHA – Gift Funds from Real Estate Agent: Can a real estate agent who is related to the borrower gift commission towards down payment and closing costs?

Answer: FHA does allow a family member real estate agent involved in the transaction to gift commission to the buyer.  Just be sure that the “family member” fits the definition of a family member by FHA. See the full guideline below. Reference: 4000.1 II.A.4.d.iii.(Q) or II.A.5.c.iii.(Q)  Real Estate Commission from Sale of Subject Property refers to the […]

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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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FHA – Related Realtor Providing Down payment: Will FHA allow a gift of commission from a “family member” who is a real estate agent?

Answer: Yes.  FHA does allow a family member to gift their commission to the buyer.  See the full guideline below. Reference: 4000.1 II.A.4.d.iii.(Q) or II.A.5.c.iii.(Q)  Real Estate Commission from Sale of Subject Property refers to the Borrower’s (i.e., buyer’s) portion of a real estate commission earned from the sale of the property being purchased.  Mortgagees […]

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