Fannie Mae and Freddie Mac sent out a notice to lenders this week that if the Seller chooses to pay for the Buyer's Agent's representation (commission), those costs will NOT count against the interested party contribution limits. It's business as usual.

We were concerned that limiting first-time homebuyers to a 3% seller credit limit would negatively impact them. However, Fannie & Freddie just confirmed that the seller can STILL contribute 3% AND the buyer's agent commission if they wish. 

Some good news for once! 

"Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) permits interested parties (including property sellers) to make Contributions to the borrower’s closing costs are subject to maximum limits ranging between 2% and 9% of the property value. Typical fees and/or closing costs paid by a seller in accordance with local custom, known as common and customary fees or costs, are not subject to the IPC limits described in Selling Guide B3-4.1-03, Types of Interested Party Contributions (IPCs). 

If a seller or seller’s real estate agent continues to pay the buyer’s real estate agent commission in accordance with local common and customary practices, these amounts are not required to be counted towards the IPC limits for the transaction."

Let me know if you have any questions about this, but this is good news!