NAR Settlement: Who Pays the Buyer’s Agent, and How Mortgage Programs Treat It

Since the NAR settlement rules took effect in August 2024, buyers and Realtors keep asking me the same questions: who pays the buyer’s agent now, and can that cost go into my loan? Here is how it works on the financing side, in plain English.

I have been a Florida mortgage broker since April 2000, and I work with buyers, agents and many wholesale lenders every week. The settlement did not change the basic way lenders look at commissions, but it did change who writes the check.

What Actually Changed

Under the settlement, offers of buyer-agent compensation can no longer be posted on the MLS, and buyers generally sign a written agreement with their agent before touring homes. The buyer’s agent can still be paid by the seller, by the buyer, or by a combination. That gets negotiated in each deal.

How Lenders Treat the Buyer’s Agent Fee

From a lending standpoint, a real estate commission has always been a closing cost: a fee paid to a settlement service provider that must be disclosed on your Loan Estimate and Closing Disclosure. That has not changed. What matters is who pays it and how any credits are applied.

• Paid by the seller. If the seller pays the buyer’s agent, as is customary in many deals, the major agencies have generally said this is not counted against the buyer’s seller-concession limits.
• Paid by the buyer. If you pay your own agent, it is a closing cost you need to cover, along with your other closing costs and down payment.
• Seller credits. A seller credit toward your closing costs may be able to cover part of a buyer-paid commission, within the program’s concession limits.

Program by Program

• Conventional (Fannie Mae and Freddie Mac): buyer-agent fees are treated as a closing cost. Seller credits follow normal concession limits.
• FHA: issued similar guidance. Buyer-paid agent fees are treated as a closing cost, and seller credits follow FHA’s concession rules.
• VA: historically limited what veterans could pay. VA issued guidance after the settlement allowing veterans to pay buyer-broker fees under certain conditions. Ask about the current rules before you sign a buyer agreement.
• USDA: follows industry-standard treatment of these fees.

Agency rules and individual lender overlays change, so confirm the current guidelines with me before you finalize your offer.

Down Payment Assistance Watch-Out

Several housing finance agencies and down payment assistance programs do not allow their funds to be used to pay real estate commissions. If you are using DPA and plan to pay your own agent, check that before you write the offer. See down payment assistance in Jacksonville.

For Buyers and Agents: Plan Before the Offer

The cleanest deals are the ones where the commission plan and the financing plan are worked out before the offer goes in. If you are a buyer, ask me to estimate your cash to close under a few commission scenarios. If you are an agent, I am glad to run numbers for your clients. Any figures I provide are estimates based on the information provided.

Related: NAR settlement buyer-agent commission FAQ · Seller contributions in Florida

Available for qualified borrowers. Program guidelines apply, guidelines may change, and lender overlays may be stricter. All loans are subject to credit approval. This is general information, not legal advice.

Nathan Young is the founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, serving Florida since April 2000, and the 2025 NAMB Mortgage Broker of the Year. Call or text 904-880-6741. NMLS #325206 | Company NMLS #356789. Equal Housing Opportunity.