One way to pay your buying broker per one of my mortgage lending gurus...

 

With all of the unknows swirling around, here’s a breath of fresh air — some certainty around buyer agent compensation. Yesterday FHA announced that BAC is not an “interested party contribution” so long as its “reasonable in amount” and consistent with “state and local law or custom”. Translation: Business As Usual for FHA. Buyers can ask a seller pay for your services plus up to an additional 6% of the usual seller credits. Here’s language you can use for an FHA-financed offer with a request for seller-paid BAC: “Per local custom, seller agrees to pay X% of the price to buyer’s agent commission. Additionally, seller agrees to pay up to $X toward buyers closing costs, prepaids, discount points, temporary rate buydown and/or home warranty of buyer’s choice.” “Per local custom” gives underwriters a little added cover to exclude BAC from interested-party contributions. The laundry list allows maximum flexibility to spend credits in most beneficial way for your buyer (without bugging you for an addendum). This week’s YouTube video is as much for you as it is for your clients: Mortgages for Self-Employed | Sole Proprietor Income | Schedule C Analysis Seeing your income through a lender’s eyes is the key to maximizing loan qualifying income while keeping your tax bill low. Those two things sound like they’re at odds, but they don’t have to be. I hope you can find the time to watch — and please share with your self-employed clients.

Julee Felsman & the Workshop Team (She/Her) NMLS# 120831 Branch Manager/SVP of Mortgage Lending (503) 799-3711  |  Email Me  |  Visit My Website 1300 SE Stark Street, Suite 111 Portland, OR 97214