source:
  type: regulation
  id: fnma-sel-b3-4.1-02
  authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
  description: "Fannie Mae Single Family Selling Guide topic B3-4.1-02 (Interested Party Contributions (IPCs)).\
    \ Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fnma-sel-b3-4.1-02-0
  canonical_id: fnma-sel-b3-4.1-02-0
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): Introduction This topic contains information on
    interested party contributions, including: Overview Interested Parties Financing Concessions Maximum Financing
    Concessions Sales Concessions IPC Exclusions Undisclosed IPCs Interest Rate Buydowns Payment Abatements Lender
    Checklist …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Introduction This topic contains information on interested party contributions, including:
      Overview Interested Parties Financing Concessions Maximum Financing Concessions Sales Concessions IPC Exclusions
      Undisclosed IPCs Interest Rate Buydowns Payment Abatements Lender Checklist for IPCs Overview Interested party
      contributions (IPCs) are contributions made by third parties with a vested interest in the transaction. These
      funds are used to cover costs that are typically the buyer''s responsibility. IPCs may include ﬁnancing or
      sales concessions, as described below. Fannie Mae does not permit IPCs to be used to make the borrower''s
      down payment, meet ﬁnancial reserve requirements, or meet minimum borrower contribution requirements. Fannie
      Mae considers the following to be IPCs: funds paid directly by an interested party to the borrower; funds
      that ﬂow through a third-party organization, including nonproﬁt entities, from the interested party to the
      borrower; funds provided to the transaction on the borrower''s behalf by an interested party, including a
      third-party organization or nonproﬁt agency; and funds donated by an interested party to a third party, which
      then pays some or all of the closing costs for a speciﬁc transaction.'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-1
  canonical_id: fnma-sel-b3-4.1-02-1
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): , 2026 406 Interested Parties Interested parties
    to a transaction include, but are not limited to: the property seller, the builder or developer, the real estate
    agent or broker, any aﬃliate of the above, or any party that can beneﬁt from the sale of the property at the
    highest p…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 406 Interested Parties Interested parties to a transaction include, but are not limited
      to: the property seller, the builder or developer, the real estate agent or broker, any aﬃliate of the above,
      or any party that can beneﬁt from the sale of the property at the highest price and inﬂuence the sales price
      or real estate transaction (For Fannie Mae''s purposes, an aﬃliation exists when there is direct common ownership
      or control by the lender over the interested party, by the interested party over the lender or by a third
      party over both.) Note: A lender or employer is not considered an interested party to a sales transaction
      unless it is the property seller or is aﬃliated with the property seller or another interested party to the
      transaction. Financing Concessions Financing concessions are ﬁnancial contributions towards the loan transaction
      from interested parties. Financing concessions are acceptable when they are contributed towards: Borrower
      closing costs, including prepaids; or Borrower homeowners'' association (HOA) assessments covering any period
      after the settlement date (limited to no more than 12 months). Maximum Financing Concessions The table below
      provides maximum ﬁnancing concessions, which are calculated using the lower of the sales price or appraised
      value (not the loan amount) of the subject transaction. Typical fees and/or closing costs paid by a seller
      in accordance with local custom, known as common and customary fees or costs, are not subject to Fannie Mae
      maximum ﬁnancing concessions. Financing concessions that exceed the below limits are considered sales concessions
      and must be deducted from the property''s sales price. As a result, the maximum LTV/CLTV ratios must be recalculated
      using the reduced sales price or appraised value. Additionally, ﬁnancing concessions must be equal to or less
      than the sum of the borrower''s closing costs. Any amount exceeding the borrower''s closing costs must be
      treated as a sales concession. See Sales Concessions below.'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-2
  canonical_id: fnma-sel-b3-4.1-02-2
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): , 2026 407 Occupancy Type LTV/CLTV Ratio Maximum
    Financing Concessions Principal residence or second home Greater than 90% 3% 1 75.01% – 90% 6% 75% or less 9%
    Investment property All CLTV ratios 2% See'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 407 Occupancy Type LTV/CLTV Ratio Maximum Financing Concessions Principal residence
      or second home Greater than 90% 3% 1 75.01% – 90% 6% 75% or less 9% Investment property All CLTV ratios 2%
      See'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-3
  canonical_id: fnma-sel-b3-4.1-02-3
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): Loans Secured by HomePath Properties for an exception
    to this limit for principal residence transactions. 1 Sales Concessions Sales concessions are IPCs that take
    the form of non-realty items and may be paid prior to, at or after closing of the transaction. They include,
    but are …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Loans Secured by HomePath Properties for an exception to this limit for principal residence
      transactions. 1 Sales Concessions Sales concessions are IPCs that take the form of non-realty items and may
      be paid prior to, at or after closing of the transaction. They include, but are not limited to: contributions
      such as cash/cash-like gifts; rebates, such as those from real estate agents or brokers, which are not credited
      towards the transaction; furniture, automobiles, decorator allowances, moving costs, and other giveaways;
      lender incentives as described in'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-4
  canonical_id: fnma-sel-b3-4.1-02-4
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): Lender Incentives from a lender who is, or is aﬃliated
    with, an interested party; and ﬁnancing concessions that exceed the maximum ﬁnancing concessions. Sales concessions
    must be deducted from the property''s sales price and the lower of the reduced sales price or appraised value
    …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Lender Incentives from a lender who is, or is aﬃliated with, an interested party; and ﬁnancing
      concessions that exceed the maximum ﬁnancing concessions. Sales concessions must be deducted from the property''s
      sales price and the lower of the reduced sales price or appraised value must be used to calculate LTV/CLTV
      ratios for underwriting and eligibility purposes. IPC Exclusions The following are not considered to be IPCs
      and are not subject to the requirements described in this topic. A lender credit derived from premium pricing,
      even if the lender is an interested party to the transaction; Gift funds or gift of equity from a seller who
      is also an acceptable donor provided that: The donor is not a builder, or another interested party, and has
      no aﬃliation with any other interested party to the transaction, and All requirements pertaining to gift funds
      and gift of equity from an acceptable donor as stated in'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-5
  canonical_id: fnma-sel-b3-4.1-02-5
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): Gifts of Equity are met; A legitimate pro-rated
    real estate tax credit in places where real estate taxes are paid in arrears; and Fees for standby commitments
    (refer to Interest Rate Buydowns section below).'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: Gifts of Equity are met; A legitimate pro-rated real estate tax credit in places where real
      estate taxes are paid in arrears; and Fees for standby commitments (refer to Interest Rate Buydowns section
      below).
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-6
  canonical_id: fnma-sel-b3-4.1-02-6
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): , 2026 408 Undisclosed IPCs Mortgages with undisclosed
    IPCs are not eligible for sale to Fannie Mae. Examples of these types of contributions include, but are not
    limited to moving expenses, payment of various fees on the borrower''s behalf, "silent" second mortgages held
    by the p…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 408 Undisclosed IPCs Mortgages with undisclosed IPCs are not eligible for sale to Fannie
      Mae. Examples of these types of contributions include, but are not limited to moving expenses, payment of
      various fees on the borrower''s behalf, "silent" second mortgages held by the property seller, and other contributions
      that are given to the borrower outside of closing and are not disclosed on the settlement statement. Interest
      Rate Buydowns If a temporary or permanent interest rate buydown is being oﬀered to the borrower, and the subsidy
      is funded by an interested party or a lender aﬃliated with one, the cost of that subsidy must be included
      in the IPC calculation. The lender must ensure the subsidy cost meets Fannie Mae''s allowable maximum ﬁnancing
      concessions. This can be accomplished by conﬁrming the current market interest rate (that is, the rate without
      the payment of any discount points) and the discount points being charged to obtain the interest rate oﬀered
      with the buydown. Note: Standby commitment (also known as forward commitment) agreements between a builder
      and lender for blanket interest rate coverage that are executed prior to signing a sales contract with a borrower
      are not subject to Fannie Mae''s maximum ﬁnancing concessions because they are not attributable to the speciﬁc
      loan transaction. Loans with a reduced interest rate due to a standby commitment must be delivered with SFC
      887. Payment Abatements Loans with any type of payment abatement are not eligible for sale to Fannie Mae,
      even if they are disclosed on the settlement statement. This prohibition applies when an interested party
      funds the abatement directly and/or through another entity, such as a nonproﬁt down payment assistance program.
      Note: The payment of HOA fees is not considered an abatement unless the payment of the fee extends for more
      than 12 months. Paying HOA fees for 12 months or less is considered an interested party contribution. Lender
      Checklist for IPCs The lender must ensure that all of the following requirements for an IPC are satisﬁed.'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-7
  canonical_id: fnma-sel-b3-4.1-02-7
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): , 2026 409 ✓ Lender Checklist for IPCs Ensure that
    any and all IPCs have been identiﬁed and taken into consideration. Provide the appraiser with all appropriate
    ﬁnancing data and IPCs for the subject property granted by anyone associated with the transaction. Ensure that
    the prop…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 409 ✓ Lender Checklist for IPCs Ensure that any and all IPCs have been identiﬁed and
      taken into consideration. Provide the appraiser with all appropriate ﬁnancing data and IPCs for the subject
      property granted by anyone associated with the transaction. Ensure that the property value is adequately supported.
      Ensure that the LTV and CLTV ratios, after any IPCs are taken into consideration, remain within Fannie Mae’s
      eligibility limits for the particular product. Ensure that the level of mortgage insurance coverage, if applicable,
      has been obtained, based on the standard LTV ratio after any IPC adjustments have been made. Note: When the
      transaction is a purchase of a property located in the state of New York, the determination of whether to
      place mortgage insurance must be based solely on New York state law, using the appraised value at the time
      of sale for a non-co-op property or the sales price for a co-op property without an adjustment reﬂecting excess
      IPC contributions. See LTV Ratio Determination in New York State in'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-8
  canonical_id: fnma-sel-b3-4.1-02-8
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): Provision of Mortgage Insurance, for additional
    information. Scrutinize all loan and sales contract documents, including but not limited to the sales contract,
    the loan estimate, the loan application, the appraisal report, and the settlement statement. Ensure that all
    elements of…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: Provision of Mortgage Insurance, for additional information. Scrutinize all loan and sales
      contract documents, including but not limited to the sales contract, the loan estimate, the loan application,
      the appraisal report, and the settlement statement. Ensure that all elements of the settlement statement were
      taken into consideration during the underwriting process. Ensure that fees and expenses are consistent between
      all documents. Analyze any diﬀerences and review any discrepancies. Recent Related Announcements The table
      below provides references to recently issued Announcements that are related to this topic. Announcements Issue
      Date Announcement SEL-2025-03 May 07, 2025 Announcement SEL-2025-02 April 02, 2025
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b3-4.1-02-9
  canonical_id: fnma-sel-b3-4.1-02-9
  section: Fannie Mae Single Family Selling Guide B3-4.1-02
  description: 'B3-4.1-02 Interested Party Contributions (IPCs): , 2026 410 Announcements Issue Date Announcement
    SEL-2023-08 September 06, 2023 Announcement SEL-2021-07 August 04, 2021 Announcement SEL-2019-07 August 07,
    2019'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) (05/07/2025)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 410 Announcements Issue Date Announcement SEL-2023-08 September 06, 2023 Announcement
      SEL-2021-07 August 04, 2021 Announcement SEL-2019-07 August 07, 2019'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B3-4.1-02 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
