Seller Concessions for Real Estate Commission Fees for 6% Cap on Kentucky USDA Mortgage Loans
The U.S. Department of Agriculture (USDA) has approved a new exemption on seller concessions to meet industry standards while ensuring Kentucky Mortgage borrowers for rural homebuyers in Kentucky remain eligible for affordable financing under the Single Family Housing Guaranteed Loan Program . This exemption enables Kentucky USDA homebuyers to exclude real estate commission fees from the 6 percent cap on seller, or other interested party, allowances to incentivize a buyer to purchase a home. These concessions may include funding toward the buyer’s mortgage financing costs or loan closing costs. Under the exemption, real estate commission fees paid by the seller on behalf of the homebuyer will be exempt from this cap to ensure that rural homebuyers will retain affordable access to Kentucky USDA guaranteed home loan financing regardless of changes to real estate commission requirements. Kentucky Rural Housing USDA’s Single Family Housing Guaranteed Loan Program assists lender...