1. Rural Relevance
Low- and moderate-income home buyers and sellers in rural Ohio, Kentucky, West Virginia, Virginia, Pennsylvania, and Indiana participating in the Single Family Housing Guaranteed Loan Program will have more flexibility in covering closing costs and real estate commissions when buying or selling homes.
2. Federal Register Overview
ACTION TYPE: Final rule
AGENCY: Rural Housing Service (RHS), U.S. Department of Agriculture (USDA)
DOCKET / RIN: RHS-26-SFH-0364; RIN 0575-AD47
PUBLISHED: November 9, 2026
EFFECTIVE: November 9, 2026
COMMENT DEADLINE: Not open for comment
3. What It Does
The rule amends the Single Family Housing Guaranteed Loan Program regulation at 7 CFR 3555.102(h) by excluding real estate commission fees from the six percent limitation on interested party (seller) concessions. Previously, seller contributions toward various costs were capped at six percent, which included commission fees. Under the updated rule, sellers can contribute more toward borrower closing costs, necessary repairs, or other permissible transaction expenses without being restricted by the six percent cap due to real estate commission fees.
4. Why The Agency Says It’s Doing This
According to the rule's preamble, the agency is amending the regulation to align its policy with prevailing mortgage industry standards. The agency states that excluding real estate commission fees from the six percent limitation allows sellers to contribute more toward closing costs and transaction expenses, enabling applicants to retain more of their own funds for future investments, home improvements, or the purchase of goods and services, thereby supporting economic activity.
Section 502(h) of Title V of the Housing Act of 1949 (42 U.S.C. 1472(h)), as amended; implemented by 7 CFR part 3555.
6. Who It Affects
Borrowers, lenders, and sellers involved in single-family housing transactions utilizing the USDA Rural Housing Service Single Family Housing Guaranteed Loan Program (Assistance Listing Number 10.410).
7. How to Comment
Not applicable
8. Source
Federal Register, Vol. 91, No. 215, pages 70769–70771
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