Introduction
This guideline talks about special deals or bonuses that a lender might offer to someone taking out a mortgage. These bonuses can be given directly by the lender or through someone else.
Lender Incentives
Sometimes, when you’re getting a mortgage, the lender might offer you an extra perk. This could be in the form of cash, something similar to cash like a gift card, or another valuable item. However, this bonus isn’t meant to help with the actual loan costs. For example, you can’t use this bonus as part of your down payment or to help pay off other debts to qualify for the mortgage. This kind of incentive is usually part of a special promotion or program the lender is running.
There are a few rules about these incentives:
– They can’t come from the money you’re borrowing.
– You need to be able to qualify for the loan without counting this incentive.
– The value of the incentive can’t be more than $2,500.
– You shouldn’t have to pay back the incentive.
If the lender is also selling the property or has another financial interest in the deal, this incentive is seen differently. It’s considered a sales concession, which has its own rules.
It’s important to note that if a lender is helping you with your closing costs or other upfront fees, that’s not considered an incentive. Instead, it’s called a lender contribution, and there’s a separate section (B3-4.3-06, Grants and Lender Contributions) that covers those details.
Recent Related Announcements
Here’s a quick list of recent updates or announcements from Fannie Mae that relate to lender incentives. These might give you more context or information about how incentives can be used or any new rules about them.
– On May 07, 2025, there was Announcement SEL-2025-03.
– Another update was given on June 5, 2024, with Announcement SEL-2024-04.
– And on December 16, 2020, there was Announcement SEL-2020-07.
These announcements can provide more specific details or updates to the general rules about lender incentives.
References
For more details, visit Types of Interested Party Contributions (IPCs) of the Fannie Mae Selling Guide.