A borrower who is a real-estate agent can collect commission from his or her own purchase transaction. 

Steve Peters

COO/ CCO

Gateway Mortgage Group LLC

From: HomeFirst Mortgage
Sent: Friday, July 16, 2010 6:47 PM
To: DEunderwriter@gmos.us

Subject: scenario/new loan question – Real Estate Agent Commision

I have homebuyer who is ready to purchase. He has sufficient funds to cover his down payment and leave a couple of thousand dollars left over from his FHA purchase. He is a licensed, though generally inactive, real estate agent who expects to earn the commission from his purchase.

Two questions:

1. Can the commission earned at settlement be counted toward his cash reserves?

2. Are there any other issues or problems with borrower collecting commission from his own purchase?

Thanks for your feedback on this!

HomeFirst Mortgage