Federal Register #Docket No. RHS-25-SFH-0003

USDA Proposes Regulatory Change to Rural Housing Loan Program Seller Concession Rules

This opportunity concerns a proposed regulatory amendment by the USDA Rural Housing Service (RHS) to the Single Family Housing Guaranteed Loan Program (SFHGLP): - Government Buyer: - U.S. Department of Agriculture (USDA), Rural Housing Service (RHS) - Purpose of Amendment: - Excludes real estate commission fees from the 6 percent interested party contribution (seller concession) limitation - Aligns SFHGLP with other federal housing agencies, including: - Federal Housing Administration (FHA) - U.S. Department of Veterans Affairs (VA) - Fannie Mae (FNMA) - Freddie Mac (FHLMC) - Impact: - Allows buyers in rural areas to finance real estate commission fees or have sellers pay them without these fees counting against the seller concession cap - Reduces closing cost barriers for rural homebuyers - Intended to increase homeownership opportunities in rural communities - Products/Services: - No products or services are being procured; this is a regulatory/policy update - OEMs and Vendors: - No OEMs or vendors are mentioned, as this is not a procurement of goods or services - Notable Requirements: - Regulatory change affects loan program requirements, not a purchase or contract

Description

The U.S. Department of Agriculture's Rural Housing Service (RHS) proposes to amend the Single Family Housing Guaranteed Loan Program (SFHGLP) regulations to exclude real estate commission fees from the 6 percent interested party contribution limitation. This change aligns the program with other federal housing agencies and reflects evolving real estate market conditions, allowing buyers to finance these fees or have sellers pay them without counting against the seller concession cap. The amendment aims to increase homeownership opportunities in rural areas by reducing closing cost barriers for buyers.

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