Short answer: Starting November 9, 2026, real estate commissions no longer count toward the 6% cap on seller concessions in USDA’s guaranteed rural home loan program. In plain terms, a seller can now pay the agent’s commission and still put up to 6% of the price toward the buyer’s closing costs, repairs and other allowed expenses.
The change comes from a final rule published in the Federal Register on November 9 by USDA’s Rural Housing Service. It’s a short rule, only three pages, but it matters for anyone buying or selling a home in a rural area with a USDA-backed loan, and that includes a lot of people buying homes on acreage outside city limits.
What exactly did USDA change?
USDA’s Single Family Housing Guaranteed Loan Program lets approved private lenders make home loans to low- and moderate-income buyers in eligible rural areas, with the government guaranteeing the loan. Like most mortgage programs, it limits how much a seller or other “interested party” can contribute to the deal. That limit is 6% of the sales price.
The question was whether a real estate commission paid by the seller ate into that 6%. The new rule settles it. The revised definition in the program regulations (7 CFR 3555.102(h)) now says plainly that real estate commission fees are excluded from the 6% seller concession limitation. USDA said the goal is to align its policy with “prevailing mortgage industry standards.”
Here are the verified details from the rule:
- Effective date: November 9, 2026, the same day it was published.
- Concession cap: still 6% of the sales price, unless USDA provides otherwise.
- What’s excluded now: real estate commission fees.
- What still counts: seller or third-party money toward financing costs, closing costs, escrow accounts, furniture or other giveaways.
- Background: USDA proposed the change on April 20, 2026, and got comments from 11 respondents. Ten supported it.
Why does this matter for rural buyers?
Commissions became a hot topic after recent changes in how buyer-agent pay is negotiated. When a seller agrees to cover the buyer’s agent, that money has to show up somewhere on the closing statement. Under an unclear rule, there was a risk it would be lumped in with concessions and squeeze out help the buyer actually needed for closing costs or repairs.
Here’s a simple example with made-up round numbers, just to show the math. On a $250,000 rural home, 6% is $15,000. If a $7,500 buyer-agent commission counted against that cap, only $7,500 would be left for closing costs and repairs. With commissions excluded, the seller can still offer up to the full $15,000 in concessions on top of the commission, if the deal and the appraisal support it.
USDA’s own reasoning is that buyers can keep more of their own cash for home improvements and other spending. For first-time buyers stretching to afford a house in the country, keeping a few thousand dollars in the bank after closing is a real cushion, especially with an older home or a well and septic system that might need work.
What should sellers of rural property take from this?
If you’re selling a home on land in a USDA-eligible area, this makes your property a little easier to finance. You can cover the buyer’s agent and still offer closing-cost help without bumping into the cap. That can widen your buyer pool at a time when homes are sitting longer. NAR’s chief economist noted on November 6 that months’ supply is at its highest level since 2015.
Just keep in mind that concessions aren’t free money. They come out of your net, and the price still has to appraise. If you’re weighing how to price and market rural acreage, our guide to the process of selling land walks through the steps.
Are there any guardrails?
Yes. One commenter worried the change could be misused to sneak improper rebates to buyers. USDA responded that existing rules still apply: lenders must follow consumer protection laws enforced by the CFPB, fees must be reasonable and customary, point and fee limits still apply, and buyers can’t get cash back at closing beyond their out-of-pocket costs.
Does this apply to raw land loans?
No. This rule covers the guaranteed program for buying a home in an eligible rural area. It doesn’t create new financing for vacant land. If you’re buying raw acreage first and building later, you’ll usually be looking at a land loan, seller financing or a construction loan instead. Our explainers on how land loans work and how to finance a land purchase cover those options.
The bottom line
This is a small rule with a practical payoff. USDA borrowers in rural areas can now get up to 6% in seller help for closing costs and repairs even when the seller is also paying commissions. If you’re buying with a USDA loan, ask your lender and agent how they’ll structure concessions under the new rule. If you’re selling a rural home, it’s one more tool to help a deal close.
By Nick. Updated November 9, 2026.
Sources
- Rural Housing Service, USDA: Single Family Housing Guaranteed Loan Program-Limited Party Concessions, final rule, 91 FR 70769 (November 9, 2026)
- National Association of Realtors: NAR’s Yun on pent-up housing demand (November 6, 2026)