Limits on Real Estate Rebates or IPC

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A Real Estate rebate is called a third party contribution or Interested party contribution.

I.P.C. is short for anyone who is contributing to a transaction that has a financial interest

I.P.C limits based on the lower of appraised or sale price  Example, If you were putting 9% down on a Conventional loan the IPC limit is 3% from all parties. 10-25% down goes to 6% above 25% down 9% assuming appraised at selling price. This is one limit, there are others.

All interested partied must agree to The IPC.

Example there are few builders that do not allow third party contributions. One of those is GL Homes. Some builders do not allow in certain divisions in their company. Pulte Group in SW Florida does not allow IPC

No, Separate guidelines, Fed. State, & mortgage co's. Each have their own guidelines. A mortgage company at closing may require a buyer signature that they will not receive anything after closing. If someone tells you they'll pay you cash after closing. Run, you may be committing mortgage fraud.

This link goes directly to Fannie Mae article on IPC

The IPC can be applied towards different expensed depending on the TYPE of mortgage, FHA, Conv. or VA.  Each is different. Visit Fannie Mae link