Under the new rules, can buyer agent compensation be included in the buyer's mortgage financing?
Question & Answer
Review the question and all answer choices
No, it must always be paid in cash
Option A is incorrect because it states an absolute prohibition that doesn't exist. Many loan programs do allow buyer agent compensation to be financed, making this statement factually inaccurate and overly restrictive.
Yes, if the lender and program allow it
Only for FHA loans
Option C is incorrect because it limits financing of buyer agent compensation to only FHA loans. While FHA loans do allow this financing, other loan programs may also permit it, making this answer too narrow and incomplete.
Only if the seller agrees in writing
Option D is incorrect because seller agreement is not a requirement for financing buyer agent compensation. While seller cooperation may be needed for certain aspects of the transaction, financing buyer agent compensation depends on lender guidelines, not seller consent.
Why is this correct?
Answer B is correct because buyer agent compensation can be financed if the specific lender and loan program permit it. This option accurately reflects the conditional nature of the financing rules, acknowledging that while some programs allow it, it's not universally available without lender approval.
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