Realtor

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 [...]

2019-02-21T16:20:41-05:00February 25th, 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|