Thursday, March 21, 2024

Seller Concessions Per Loan Type

Here is a quick way to see how seller concessions could be applied to pay for Buyer Agents should the NAR proposed settlement be accepted. 

Conventional loans range from 3% to 9% depending on the buyer's down payment while a conventional investment loan tops out at 2%.

The FHA and USDA allowances are generous enough to cover the agent and reasonable repairs.

VA has a variety of issues that must be addressed such as "Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas Veterans Land Board or other governmental loan program regulations."

VA Pamphlet 26-7 currently states under Fees and Charges the Veteran Borrower Cannot Pay, "Fees or commissions charged by a real estate agent or broker in connection with a VA loan may not be charged to or paid by the veteran-purchaser.

While use of “buyer” brokers is not precluded, veteran-purchasers may not, under any circumstances, be charged a brokerage fee or commission in connection with the services of such individuals. Since information on property available for purchase and financing options is widely available to the public from a variety of sources, VA does not believe that preventing the veteran from paying buyer-broker fees will harm the veteran."

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com


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