B3-4.3-21, Borrower's Earned Real Estate Commission (04/05/2023)

Earned real estate commission refers to the borrower's portion of a real estate commission earned from the sale of the subject property being purchased when the borrower is acting as their own real estate agent. Lenders may use the borrower's earned real estate commission as an eligible source of funds for down payment and closing costs provided the borrower is a licensed real estate agent and will receive a sales commission from the purchase of the subject property.

The lender must document the following:

• the settlement statement must reflect the commission earned by the borrower, and
• the earned commission amount must be credited towards the mortgage loan.

Note: For DU loan casefiles, earned real estate commission must be entered as a Credit Type of "Other" in Section 2b of the online loan application.