Realtor Commission for Down Payment

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Home loan guidelines seem to be in a period of flux currently.  Many of the changes are favorable and ease the loan approval process.  One change that was long overdue is to allow Real Estate commissions to be used for down payment on a personal transaction.  While this has not changed with each and every loan type, Freddie Mac has made a change and now allows this.

Real Estate Agent’s Commission & Down Payment

Since Monday March 6, 2017 Freddie Mac is allowing Real Estate Agents to use commission earned on the subject property toward their own down payment when they are also the buyer of that same property on a Conventional home loan.  Prior to this change date, Freddie Mac did not allow this. Fannie Mae still does not (as of today).  In fact over the years, this topic has been an on again/off again situation.  Today, it’s on again with at least Freddie Mac for now.

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Per a direct communication with Freddie Mac, they are not allowing an agent to gift their commission to a related buyer to use as that buyer’s down payment.  Both Fannie Mae and Freddie Mac still allow Agents to pay for closing costs for a buyer.

Note: Fannie Mae will NOT allow Agent’s commissions to go toward their own down payment.  At this point ONLY Freddie Mac will allow this.

By Jeremy House


  1. Yestd Fannie trying to get a single family home could you please help me call me tomorrow it will greatly appreciate my phone number 229 425 6266 thanks

  2. Hi,

    I wanted to know is this legal to ask realtor to contribute their commission to my down payment? my realtor didnt do anything, I have researched and found my house and added realtor name, realtor then agreed to pay 2% of commission and lease buy-out. My builder contribution covers 100% of the closing cost, but im short of down payment money, can my realtor add their 2% in down instead of putting it in closing cost?


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