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.