Loans · Fannie Mae Selling GuideReal estate agent buying their own home: using your commission for the down payment
When a licensed real estate agent buys a home and acts as their own agent, the commission they earn on that purchase can be an eligible source of funds for the down payment and closing costs on a Fannie Mae loan (Selling Guide B3-4.3-21, Borrower's Earned Real Estate Commission). The borrower must be a licensed real estate agent who will receive a sales commission from the purchase of the property being financed. The lender documents two things: the settlement statement reflects the commission earned by the borrower, and the earned commission is credited toward the mortgage loan. For loans run through Desktop Underwriter, the commission is entered as a credit of type 'Other' in Section 2b of the loan application.
The requirements (B3-4.3-21)
1. Licensed agent
The borrower is a licensed real estate agent acting as their own agent.
2. Commission on this purchase
The borrower receives a sales commission from the purchase of the subject property.
3. On the settlement statement
The statement reflects the commission the borrower earned.
4. Credited to the loan
The earned commission is credited toward the mortgage transaction.
Worth knowing
- It can cover the down payment and closing costs.
- In DU it is entered as a credit type 'Other' in Section 2b of the application.
What the TC can do
- Tell the lender and the closing agent early that the buyer is a licensed agent using their commission.
- Get the brokerage's commission disbursement instructions to the closing agent.
- Check the Closing Disclosure and settlement statement for the commission credit line.
Questions agents ask
Can a real estate agent use their commission as a down payment?
On a Fannie Mae loan, yes – if the agent is licensed, acts as their own agent and earns a commission on the purchase, the settlement statement shows it and it is credited toward the loan (Selling Guide B3-4.3-21).
How is an agent's own commission shown at closing?
The settlement statement must reflect the commission earned by the borrower, credited toward the mortgage transaction.
Related guides
In ClosingCode the Closing Disclosure / settlement statement is a standard document on every deal – check the commission credit before closing day.
Start free trialSource: Fannie Mae Selling Guide B3-4.3-21, Borrower's Earned Real Estate Commission (April 5, 2023), read at selling-guide.fanniemae.com on October 26, 2026.
General information, not financial advice. The lender decides which funds are acceptable. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.