Movement Mortgage’s Post

Earlier this month, FHA published an FAQ related to seller-paid commissions and the NAR settlement stating under FHA’s existing policy, sellers can pay the buyer-side real estate commissions / fees and they will not be included in the 6% interested party contribution limits so long as it is common and customary in the current market and all other requirements are met. Freddie Mac and Fannie Mae released similar statements on April 15 related to conventional loans stating property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. This offers more opportunities for your borrowers as it relates to seller-paid closing costs. While this information remains valid today, we will need to continue to monitor the marketplace for what will be defined as common and customary once the NAR settlement is approved by the courts which is tentatively set for July 15, 2024.  We will keep you updated as we receive additional announcements. Contact me to learn more: https://lnkd.in/eKdRr4J5 #cfmortgage

Earlier this month, FHA published an FAQ related to seller-paid commissions and the NAR settlement stating under FHA’s existing policy, sellers can pay the buyer-side real estate commissions / fees and they will not be included in the 6% interested party contribution limits so long as it is common and customary in the current market and all other requirements are met. Freddie Mac and Fannie Mae released similar statements on April 15 related to conventional loans stating property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. This offers more opportunities for your borrowers as it relates to seller-paid closing costs. While this information remains valid today, we will need to continue to monitor the marketplace for what will be defined as common and customary once the NAR settlement is approved by the courts which is tentatively set for July 15, 2024. We will keep you updated as we receive additional announcements. Contact us to learn more: https://bit.ly/3MmYB1Y #cfmortgage

Earlier this month, FHA published an FAQ related to seller-paid commissions and the NAR settlement stating under FHA’s existing policy, sellers can pay the buyer-side real estate commissions / fees and they will not be included in the 6% interested party contribution limits so long as it is common and customary in the current market and all other requirements are met. Freddie Mac and Fannie Mae released similar statements on April 15 related to conventional loans stating property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. This offers more opportunities for your borrowers as it relates to seller-paid closing costs. While this information remains valid today, we will need to continue to monitor the marketplace for what will be defined as common and customary once the NAR settlement is approved by the courts which is tentatively set for July 15, 2024.  We will keep you updated as we receive additional announcements. Contact me to learn more: https://lnkd.in/grZAuBuJ #cfmortgage

Earlier this month, FHA published an FAQ related to seller-paid commissions and the NAR settlement stating under FHA’s existing policy, sellers can pay the buyer-side real estate commissions / fees and they will not be included in the 6% interested party contribution limits so long as it is common and customary in the current market and all other requirements are met. Freddie Mac and Fannie Mae released similar statements on April 15 related to conventional loans stating property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. This offers more opportunities for your borrowers as it relates to seller-paid closing costs. While this information remains valid today, we will need to continue to monitor the marketplace for what will be defined as common and customary once the NAR settlement is approved by the courts which is tentatively set for July 15, 2024.  We will keep you updated as we receive additional announcements. Contact me to learn more: https://lnkd.in/g4QFcbHb #cfmortgage

Earlier this month, FHA published an FAQ related to seller-paid commissions and the NAR settlement stating under FHA’s existing policy, sellers can pay the buyer-side real estate commissions / fees and they will not be included in the 6% interested party contribution limits so long as it is common and customary in the current market and all other requirements are met. Freddie Mac and Fannie Mae released similar statements on April 15 related to conventional loans stating property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. This offers more opportunities for your borrowers as it relates to seller-paid closing costs. While this information remains valid today, we will need to continue to monitor the marketplace for what will be defined as common and customary once the NAR settlement is approved by the courts which is tentatively set for July 15, 2024.  We will keep you updated as we receive additional announcements. Contact me to learn more: https://lnkd.in/d75v84NH #cfmortgage

REAL ESTATE BROKERAGE COMMISSION. It appears that FHA's position is that a "seller's concession" used by buyers to compensate their brokerages/agent does not go into calculating FHA's 6% limitation/cap on "seller concessions." NAR's communicated with various agencies such as FHA and the VA (e.g., "On behalf of the National Association of Realtors' (NAR) 1.5 million members, I write to urge the Department of Veterans Affairs (VA) to revise its policies pertaining to fees veterans cannot pay when using their VA home loan benefit,") Also, In the letter submitted March 27 to the heads of FHA, Fannie Mae, and Freddie Mac, NAR partnered with the Mortgage Bankers Association (MBA) to ask that FHA and other federal financing policy continue to exclude seller or listing agent payment of buyer agent commissions from limits on "interested party contributions," or IPCs. In a March 28, email from FHA the agency seemed to agree with NAR's request, stating: "If sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met." Is financing this fee a long way off? #realestatecommission #buyeragentcommission #NAR

Did you know the seller can pay a portion of closing costs? Seller-paid closing costs (or seller concessions) are money paid toward the closing on your behalf. There are exceptions to the rules, but the maximum allowable seller concessions by loan program are as follows. • FHA loans: up to 6% • USDA loans: up to 6% • VA loans: up to 4% • Conforming (Fannie Mae and Freddie Mac) loans: up to 3-9%, depending on down payment • Investment properties: up to 2% It’s important to remember that sellers are not going to just pay for your closing costs as a kind gesture. The amount is built into the sales price. It’s okay if the seller gets a higher sales price in exchange for covering your closing costs, as long as the property appraises for at least the sales price. Consult with your real estate agent when negotiating your sales purchase.  #TheMoreYouKnow #IHMC #IntegrityHomeMortgage Patrick K. Juul pjuul@ihmcloans.com (952) 270-7569 *All assistance is provided in compliance with FHA guidelines. *Integrity Home Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA or the Federal government. #IHMC #IntegrityHomeMortgage

Did you know the seller can pay a portion of closing costs? Seller-paid closing costs (or seller concessions) are money paid toward the closing on your behalf. There are exceptions to the rules, but the maximum allowable seller concessions by loan program are as follows. • FHA loans: up to 6% • USDA loans: up to 6% • VA loans: up to 4% • Conforming (Fannie Mae and Freddie Mac) loans: up to 3-9%, depending on down payment • Investment properties: up to 2% It’s important to remember that sellers are not going to just pay for your closing costs as a kind gesture. The amount is built into the sales price. It’s okay if the seller gets a higher sales price in exchange for covering your closing costs, as long as the property appraises for at least the sales price. Consult with your real estate agent when negotiating your sales purchase.  #TheMoreYouKnow #IHMC #IntegrityHomeMortgage Bill McHugh bmchugh@ihmcloans.com (301) 514-9074 *All assistance is provided in compliance with FHA guidelines. *Integrity Home Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA or the Federal government. #IHMC #IntegrityHomeMortgage

Did you know the seller can pay a portion of closing costs? Seller-paid closing costs (or seller concessions) are money paid toward the closing on your behalf. There are exceptions to the rules, but the maximum allowable seller concessions by loan program are as follows. • FHA loans: up to 6% • USDA loans: up to 6% • VA loans: up to 4% • Conforming (Fannie Mae and Freddie Mac) loans: up to 3-9%, depending on down payment • Investment properties: up to 2% It’s important to remember that sellers are not going to just pay for your closing costs as a kind gesture. The amount is built into the sales price. It’s okay if the seller gets a higher sales price in exchange for covering your closing costs, as long as the property appraises for at least the sales price. Consult with your real estate agent when negotiating your sales purchase.  #TheMoreYouKnow #IHMC #IntegrityHomeMortgage Dave Partridge dpartridge@ihmcloans.com (804) 240-2187 *All assistance is provided in compliance with FHA guidelines. *Integrity Home Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA or the Federal government. #IHMC #IntegrityHomeMortgage

Did you know the seller can pay a portion of closing costs? Seller-paid closing costs (or seller concessions) are money paid toward the closing on your behalf. There are exceptions to the rules, but the maximum allowable seller concessions by loan program are as follows. • FHA loans: up to 6% • USDA loans: up to 6% • VA loans: up to 4% • Conforming (Fannie Mae and Freddie Mac) loans: up to 3-9%, depending on down payment • Investment properties: up to 2% It’s important to remember that sellers are not going to just pay for your closing costs as a kind gesture. The amount is built into the sales price. It’s okay if the seller gets a higher sales price in exchange for covering your closing costs, as long as the property appraises for at least the sales price. Consult with your real estate agent when negotiating your sales purchase.  #TheMoreYouKnow #IHMC #IntegrityHomeMortgage Melissa Conner mconner@ihmcloans.com (304) 839-7786 *All assistance is provided in compliance with FHA guidelines. *Integrity Home Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA or the Federal government. #IHMC #IntegrityHomeMortgage