Federal Register #2026-22772

USDA rule excludes real estate commissions from the seller-concession limit

The U.S. Department of Agriculture is clarifying seller-concession rules for its Single Family Housing Guaranteed Loan Program. - Government buyer: U.S. Department of Agriculture (USDA), Rural Development, Rural Housing Service (RHS). - Action: Final rule amending the Single Family Housing Guaranteed Loan Program regulation; this is a regulatory action, not a procurement opportunity. - Key change: Real estate commission fees are excluded from the program’s six percent seller-concession limit. - Effect: Sellers may contribute more toward borrowers’ eligible closing costs, necessary repairs, and other permitted transaction expenses. - OEMs, vendors, products, and services: None identified or requested.

Description

The Rural Housing Service (RHS), an agency of the U.S. Department of Agriculture, issues a final rule amending the Single Family Housing Guaranteed Loan Program regulation. The rule clarifies that real estate commission fees are excluded from the six percent limit on interested party seller concessions. This allows sellers to contribute more toward borrower closing costs, necessary repairs, or other permitted transaction expenses. The rule is effective November 9, 2026.

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