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USDA Rural Development · Final rule FR Doc. 2026-22772 · Published

USDA Rural Development FR Doc. 2026-22772: Single Family Housing Guaranteed Loan Program-Limited Party Concessions

USDA Rural Development amended the Single Family Housing Guaranteed Loan Program regulations to exclude real estate commission fees from the 6 percent seller concession limitation. This change allows sellers to contribute more toward borrower closing costs and other permissible expenses without counting real estate commissions against the concession cap.

Review recommendedEffective Nov 9, 2026Checks passedRead the rule ↗ (opens in a new tab)

Loan impact

From the rule text · partly verified

Applies to: USDA Single Family Housing Guaranteed Loan Program purchase loans involving seller concessions.

Investor
USDAFrom the publisher, not quoted from the text
Programs
USDAFrom the publisher, not quoted from the text
Loan purpose
Purchase
Affected area
EligibilityGuide Section 7 CFR 3555.102(h)
Effective
Nov 9, 2026
Applicability confidence
Partly verified: some rows are not matched to a quote from the source
Supporting quotes from the rule
  • loan purposes“Seller concessions. Purchasing a home if the seller, or other interested third party, contributes more than 6 percent, unless otherwise provided by the Agency, of the property's sales price toward the purchaser's mortgage financing costs, closing costs, escrow accounts, furniture, or other giveaways.”
  • affected areas“Rural Housing Service (RHS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), amends the Single Family Housing Guaranteed Loan Program (SFHGLP) regulation to clarify real estate commission fees are not included in the limit on interested party concessions.”
  • guide sections“(1) Amend 7 CFR 3555.102(h) by revising the definition of seller concessions to read as follows: Seller concessions. Purchasing a home if the seller, or other interested third party, contributes more than 6 percent, unless otherwise provided by the Agency, of the property's sales price toward the purchaser's mortgage financing costs, closing costs, escrow accounts, furniture, or other giveaways. Real estate commission fees are excluded from the 6 percent seller concession limitation.”

What changed

From the rule text · Section 7 CFR 3555.102(h)
RequirementPreviouslyNow
Seller concession limitationRelaxedNot statedReal estate commission fees are excluded from the 6 percent seller concession limitation.

What to do

AWACS interpretation · not source language

What to review: Review the updated USDA Single Family Housing Guaranteed Loan Program guidance permitting lenders to exclude real estate commission fees from the 6 percent seller concession limitation.

QC implications

  • Verify that real estate commission fees are excluded when evaluating compliance with the 6 percent seller concession cap on USDA purchase transactions.

Questions about USDA Rural Development FR Doc. 2026-22772

When does USDA Rural Development FR Doc. 2026-22772 take effect?

On November 9, 2026 (interested party concessions).

Which loans does USDA Rural Development FR Doc. 2026-22772 affect?

USDA Single Family Housing Guaranteed Loan Program purchase loans involving seller concessions.

What changed in USDA Rural Development FR Doc. 2026-22772?

Seller concession limitation (7 CFR 3555.102(h)).

What should QC review after USDA Rural Development FR Doc. 2026-22772?

AWACS interpretation, not source language: Review the updated USDA Single Family Housing Guaranteed Loan Program guidance permitting lenders to exclude real estate commission fees from the 6 percent seller concession limitation. Verify that real estate commission fees are excluded when evaluating compliance with the 6 percent seller concession cap on USDA purchase transactions.

Related reading

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.