Single Family Housing Guaranteed Loan Program - Limited Party Concessions
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This proposed rule changes how real estate commission fees are handled in the USDA's Single Family Housing Guaranteed Loan Program. It proposes that these fees no longer count towards the 6% limit on seller concessions, making it easier for buyers to afford homes by leveraging more seller contributions for other costs.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Real estate commission fees will no longer count towards the 6% seller concession limit.
- Aligns USDA's program with other housing finance entities like FHA and VA.
- Increases buyers' ability to use seller contributions for other closing costs.
Obligations
What this law requires
Real estate commission fees are excluded from the 6% seller concession limitation in the Single Family Housing Guaranteed Loan Program.
Real estate commission fees are excluded from the calculation of the 6 percent interested party concession limitation in the Single Family Housing Guaranteed Loan Program.
Sellers may negotiate the payment of real estate commission fees as a concession without including these fees in the maximum 6% contribution limit.
Approved lenders must ensure that real estate commission fees paid by sellers do not count towards the 6 percent limit on seller concessions.
Comments regarding the proposed rule must be submitted electronically through the Federal eRulemaking Portal by June 22, 2026.