Guide, updated November 2026
Lender rules on real estate rebates
When you finance a purchase, your lender has a say in any money that moves to you at closing. A rebate from your agent is one of those payments.
Why lenders care
Lenders want to know your real price and your real cash in the deal. Credits from people with an interest in the sale, including real estate agents, are treated as interested party contributions. Too large a credit can look like an inflated price.
Common US limits
- Conventional loans: interested party contributions are typically capped at 3%, 6% or 9% of the price depending on the down payment, and lower on investment properties.
- FHA loans: typically capped at 6% of the price.
- VA loans: concessions are typically capped at 4%, separate from normal closing costs.
On top of those caps, most lenders will not let a credit exceed your closing costs and prepaid items. You generally cannot walk away from a financed closing with cash in hand.
Canada
Canadian lenders are usually less involved, because the rebate is paid after completion rather than at closing. Some lenders still ask about incentives; disclose it if asked.
How to protect the rebate
- Tell your loan officer at pre-approval.
- Ask for a closing cost estimate early and compare it to the expected rebate.
- If the rebate is larger than your closing costs, have your agent negotiate a price reduction for the difference instead.