source:
  type: guide
  id: fhlmc-5501.6
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5501.6 — Interested
    party contributions
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5501.6 — Interested
    party contributions.
  coverage_tier: operative
obligations:
- id: fhlmc-5501.6-full
  canonical_id: fhlmc-5501.6-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5501.6 — Interested
    party contributions
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5501.6 — Interested
      party contributions
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '5501.6: Interested party contributions (09/03/25) This section
      contains information related to: ■ Interested party contributions: definitions,
      requirements, exceptions and documentation ■ Financing concessions: definition,
      acceptable uses and maximum limits ■ Sales concessions: definition and impact
      on loan-to-value (LTV) calculation ■ Ineligible Mortgages (a) Interested party
      contributions: definitions, requirements, exceptions and documentation Freddie
      Mac will purchase Mortgages that include interested party contributions under
      the terms of the Purchase Documents and this section. (i) Interested party definition
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 5501 As of 03/04/26
      Page 5501-39 An interested party is any person or entity that: ■ May benefit
      from the property selling at the highest possible price, and ■ Can influence
      the sales price or other terms of the real estate transaction The following
      are always considered interested parties: ■ Builder ■ Developer ■ Seller of
      the property ■ Real estate agent ■ Real estate agent’s broker and agency ■ Any
      contributing party (e.g., Seller, originating lender, employer, municipality,
      nonprofit organization or Related Person) affiliated with any of the above individuals
      or entities. For purposes of this section, an affiliation exists when the two
      parties are owned or controlled by a common third party or when one of the parties
      has ownership or control over the other. (ii) Interested party contributions
      requirements Interested party contributions are any contributions that are made:
      ■ By an interested party, as defined above, ■ In connection with the Mortgage
      or the real estate transaction, ■ To or on behalf of the Borrower, and ■ Directly
      or indirectly through a third party, including a donation to a nonprofit entity
      Freddie Mac will purchase Mortgages with interested party contributions that
      are: ■ Financing concessions meeting the requirements in Section 5501.6(b) below,
      or ■ Sales concessions meeting the requirements in Section 5501.6(c) below (iii)Exceptions
      to interested party contribution requirements Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5501 As of 03/04/26 Page 5501-40 The following types of contributions
      are not subject to the interested party contributions requirements: ■ Lender
      credit: A lender credit provided by an originating lender affiliated with an
      interested party to the transaction, provided the lender credit is derived from
      an increase in the interest rate (i.e., premium pricing) ■ Gifts from a Related
      Person: Gift funds or gift of equity from a Related Person who is also the seller
      of the subject property, provided that: • The donor is not the builder or another
      interested party and has no affiliation with any other interested party to the
      transaction, and • All of the requirements for gift funds or gift of equity
      from a Related Person as stated in Section 5501.4(a) are met ■ Real estate tax
      credits: Prorated real estate tax credits contributed by the property seller
      in areas where real estate taxes are paid in arrears ■ Builder forward commitment
      costs: The costs associated with a forward commitment obtained by a builder
      from a lender in order to offer future buyers a specific Mortgage interest rate,
      provided the forward commitment was obtained prior to entering into a contract
      with the Borrower and it was not obtained specifically for the subject transaction.
      Note: The Seller must deliver ULDD Data Point Investor Feature Identifier valid
      value “J70” for each Mortgage with rates provided based on builder forward commitments
      as required by Section 6302.53. (iv) Documentation of interested party contributions
      The amount and the source of all interested party contributions must be documented
      in the Mortgage file and be clearly shown on the Settlement/Closing Disclosure
      Statement. (b) Financing concessions: definition, acceptable uses and maximum
      limits (i) Definition and acceptable uses of financing concessions Financing
      concessions are interested party contributions that may only be used to pay:
      ■ The Borrower’s Closing Costs, and/or ■ Up to 12 months of homeowners association
      (HOA) dues, provided that the Settlement/Closing Disclosure Statement shows
      that: • The funds for the payment of the HOA dues were collected at closing,
      and Freddie Mac Single-Family Seller/Servicer Guide Chapter 5501 As of 03/04/26
      Page 5501-41 • The funds were disbursed directly to the HOA Contributions exceeding
      the amount of the Borrower’s actual Closing Costs and up to 12 months’ HOA dues
      (if applicable), as stated above, must meet the requirements for sales concessions
      in Section 5501.6(c) below, except that the payment of more than 12 months’
      HOA dues is considered an abatement as described below in 5501.6(d). (ii) Maximum
      financing concessions limits The maximum permitted financing concessions, calculated
      as a percentage of value as defined in Section 4203.1(a), are as follows: Maximum
      financing concession limits Occupancy LTV/total LTV (TLTV) ratios >90% LTV/TLTV
      ratios > 75% and ≤ 90% LTV/TLTV ratios ≤ 75% Primary Residences and second homes
      3% 6% 9% Investment Properties 2% 2% 2% Exceptions: The maximum financing concession
      limits above do not apply to: ■ Financing concessions contributed by Freddie
      Mac as the property seller for Mortgages originated for the purchase of Freddie
      Mac REO properties ■ Borrower fees or costs customarily paid by the property
      seller according to local convention The amount of any financing concessions
      exceeding the limits stated above must meet the requirements for sales concessions
      in Section 5501.6(c) below. (c) Sales concessions: definition and impact on
      LTV calculation (i) Sales concessions definition Sales concessions are interested
      party contributions, that: ■ Exceed the maximum financing concessions percentage
      limitations in Section 5501.6(b)(ii) above, and/or Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5501 As of 03/04/26 Page 5501-42 ■ Do not meet
      the acceptable uses of financing concession in 5501.6(b)(i) above, and include:
      ❑ Cash or cash-like contributions (e.g., a gift card), decorator allowances,
      vacations, furniture, automobiles, securities or other giveaways ❑ Rebates (e.g.,
      rebates from real estate agents) that are not financing concessions ❑ Reimbursement
      to the Borrower for payment of fees charged to process or negotiate a short
      sale (commonly referred to as short sale processing fees, short sale negotiation
      fees, buyer discount fees or short sale buyer fees) (ii) Impact of sales concessions
      on LTV calculation For Loan Product Advisor® Mortgages, Loan Product Advisor
      will determine the LTV ratio based on the purchase price or appraised value
      of the Mortgaged Premises and the dollar amount or value of sales concessions
      entered into Loan Product Advisor. For Manually Underwritten Mortgages, when
      calculating the LTV ratio: ■ For purposes of determining the value of the Mortgaged
      Premises pursuant to Section 4203.1(a), the dollar amount or value of any sales
      concessions must be deducted from the purchase price ■ Use the lower of the
      reduced purchase price (after the reduction for all sales concessions has been
      made) or the appraised value of the Mortgaged Premises (d) Ineligible Mortgages
      Ineligible Mortgages include: ■ Mortgages with interested party contributions
      paid outside of closing and not disclosed on the Settlement/Closing Disclosure
      Statement ■ Mortgages with abatements (that are funds provided to a lender or
      third party by an interested party to pay or reimburse in whole or in part a
      certain number of monthly payments of principal, interest, taxes, insurance
      and/or other assessments on the Borrower’s behalf in excess of Prepaid/Escrows
      associated with the Mortgage closing) including payment of more than 12 months
      of HOA dues.'
  judgment: false
