Buying a home or expanding
your residential
investment portfolio.

Rebates & Lender Credits — What You Should Know

Why You Can Receive Both — Since they originate from different parties for different aspects of the transaction, a homebuyer can receive both simultaneously.

• Real Estate Broker Rebates: A commission rebate comes directly from the real estate brokerage's commission earned on the deal (where permitted by state law).
• Lender Credits: Lender credit comes directly from the mortgage lender (often tied to rate structure, premium pricing, or promotional programs) to offset closing costs.

The Total Incentive Cap (Interested Party Contributions / IPC Limits)

• If a buyer gets a 3% broker rebate plus a seller concession plus a lender credit, the total combined credit might exceed maximum allowed limits (e.g., 3%, 6%, or 9% of the sales price depending on down payment and loan type).

RESPA Section 8 & Anti-Kickback Rules

• A lender's credit cannot be paid by the real estate broker, nor can a broker rebate be underwritten or subsidized by the lender as an unearned fee or referral kickback.
• They must remain distinctly sourced financial adjustments that are disclosed, accounted for, and documented on separate line items on the Loan Estimate and Closing Disclosure (CD).

Mandatory Lender Approval & TRID Itemization

• Under TRID / CFPB rules, all buyer credits and rebates, including broker commission rebates, must be formally disclosed on the Closing Disclosure and explicitly approved by the mortgage lender's underwriting team prior to closing.
• You cannot pay a buyer a rebate "under the table" or outside of the closing statement post-closing if doing so bypasses required lender disclosures or violates state disclosure laws.
• Disclosed Rebates: Where state law allows, offering a corporate "buyer credit" that is clearly written into the purchase contract, disclosed to all parties, and listed explicitly on the closing disclosure.