How do NAR updates impact mortgage & financing?

Please work with your Mortgage Officer for more information. Some high-level points to keep in mind: 

• Conventional FHA, USDA, VA and Jumbo Loans do not allow the financing of buyer agent commissions directly into the mortgage.
• There are other ways to help your client. 
• Seller Concessions (also called Interested Party Contributions / IPCs) - may be an option to you:
  • What is it? When a seller is willing to give something of value to a buyer to help offset closing costs. 
  • They can range from 3 - 9% (depends on loan terms)
  • Conventional - does not consider buyer agent commissions as part of the IPC. If the seller is willing to give a 4% concession on a conventional loan, you may be able to add the buyer agent compensation to the loan value. 
  •  VA Loans - as of June 11, 2024, VA has a short-term policy to allow the buyer compensation to be added to the loan value. 
  • Jumbo loans - typically go in line with conventional mortgages; but these are specific to the investor buying the loan. 
• Collaborate with your lending partner to understand how buyer representation affects the loan.