Seller’s credit has always helped buyers lower their closing costs but with this news… Things are bound for a shakeup.
Oh boy, have I got some big, big, news for you. They’ve recently clarified that buyer’s agent commissions won’t count towards those pesky Interested Party Contributions (IPCs). If you’re new to this industry, IPCs are the extras sellers can give buyers without crossing any lines—like helping with closing costs (think of it as a discount on your purchase).
Normally, there are caps on how much sellers can contribute, between 2% and 9% of the home’s price. But, commissions for buyer’s agents? They’re not included in these limits. Fannie Mae and Freddie Mac’s update comes after a lot of legal shuffles and settlement agreements affecting how agent commissions are handled.
What you need to remember is that sellers can still cover the buyer’s agent fees, which will help in keeping your closing costs down.
The FHA has agreed to similar practices, so we can say it is consistent across the board.
We don’t know yet if VA will follow suit. But I hope that when they drop their verdict—hopefully, it’s good news too.
This news coming from Fannie Mae and Freddie Mac is a really significant move that could influence how homes are bought and sold across the country. By removing the buyer’s agent commissions from IPC limits, the GSEs are helping to keep home buying affordable. This really matters in competitive markets where closing costs can be a big pain for many first-time buyers.
This will benefit many people looking to enter the market because lower closing costs mean more money stays in your pocket—which means you have more money to use for the interior design or new appliances and such.
If you are just finding your way around these new updates or you might need a quick chat about the housing market, I’m here to help you out!
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