FHA Purchase using real estate commission as down payment?

[Rich Harris]

Hello All,

The title says it all. Could someone please tell me if you can use your real estate commission (I am a licensed agent) as my 3.5% down payment on an owner occ FHA purchase loan? I will still have to add some funds to get to the 3.5%, but I am hoping this won't be a problem. Thanks!

[Robert Bowles]

Yes you can.  I helped a realtor buy a 4 plex a few months ago, she did have to sell it to her broker, but now I have a few people in her office looking to use it.

http://portal.hud.gov/hudportal/documents/huddoc?i...

4155.1 5.B.6.d Real Estate Commission From Sale of the Subject Property

If the borrower is a licensed real estate agent entitled to a real estate commission from the sale of the property being purchased, then he/she may use that amount for the cash investment, with no adjustment to the maximum mortgage required.

A family member entitled to the commission may also provide it as gift funds to the borrower.

Reference: For information on gift fund requirements, see HUD 4155.1 5.B.4.

Good luck.