Fannie Mae & FHA – VA – Realtor Credit: Does a $500 credit from a Realtor commission to the borrower affect the LTV as an IPC (Interested Party Contribution)? [MC Chart-Interested Party Contributions-All Agencies]

Answer-Fannie Mae: For Fannie Mae, an IPC does not need to be subtracted from the purchase price UNLESS you exceed the cap on IPC’s (grid below) for occupancy type and LTV. Reference-Fannie Mae Financing Concessions Financing concessions that are paid on the borrower’s behalf are subject to Fannie Mae’s IPC limits. Financing concessions are: financial [...]