Real Estate Commission Savings Program
Reduce Your Agent's Commission by Up to 30%, Legally, in All 50 States, Without Giving Up Full-Service Representation
The BuildBuyRefi.com Real Estate Commission Savings Program offers consumers one of the highest pre-negotiated real estate agent commission reductions available anywhere in the country - up to 30% on the represented side of the transaction, in all 50 states, with no minimum purchase price and full-service agent representation preserved from offer to close.
We collect no referral fee from participating agents, nor do we cap your savings at an arbitrary dollar amount the way many other lenders do. This structure is intentional - it allows us to pass the highest possible pre-negotiated savings directly to you instead of keeping a portion for ourselves.
Most banks and lenders that connect borrowers with real estate agents collect a referral fee, a marketing services agreement, or an internal override on the transaction. That cost gets passed to the consumer in the form of lower savings, capped credits, or reduced service.
This guide covers everything you need to know about Our program, including:
How the program works and who qualifies
How real estate commissions are structured and why most consumers overpay
How savings are applied at closing and what limits may apply
Which loan types and property types are eligible
How to protect your eligibility before signing with another brokerage
This guide also includes a live Commission Savings Estimator, worked examples at real transaction sizes for both buyers and sellers, and answers to the most common questions consumers ask about reducing real estate agent fees legally. Use the table of contents below to jump directly to any section.
Real estate agent commissions are fully negotiable in all 50 states. They are private contractual agreements between consumers and brokerages, not mandated rates set by federal law, state licensing boards, or the National Association of Realtors.
Most consumers never negotiate because they assume the rate is fixed. It is not, and it never has been.
The Department of Justice Antitrust Division has specifically stated that the U.S. real estate commission structure lacks competitive transparency and that consumers have the legal right to negotiate. The 2024 NAR settlement reinforced that buyer representation agreements must now be negotiated and disclosed transparently before a buyer tours a single home. That shift confirmed what has always been true - the commission is yours to negotiate.
This program was built to give you a structured way to exercise that right with a named, federally chartered institution behind it.
Over a lifetime of buying and selling property, unreduced commissions quietly erode wealth. A homeowner who buys and sells three times over fifteen years with average property values between $500,000 and $900,000 may forfeit $60,000 to $120,000 or more in commission costs alone.
Even modest reductions of 20 to 30 percent per transaction preserve tens of thousands of dollars that could reduce mortgage balances, fund permanent rate buydowns, strengthen retirement savings, or stay in your estate. This program exists to make that reduction available before you sit down at the table, not after.
What the BuildBuyRefi.com Commission Savings Program Is and What It Does for You
This is a pre-negotiated commission reduction of up to 30% on the side of the real estate transaction represented by a participating agent in our network. It is available in all 50 states, with no minimum purchase price, and no referral fee paid to BuildBuyRefi.com or The Federal Savings Bank for the agent introduction.
BuildBuyRefi.com is powered by The Federal Savings Bank (NMLS# 411500), a federally chartered institution and the largest privately held veteran-owned bank in the United States. The bank underwrites, funds, and services residential mortgage loans in-house across all 50 states. It is not a broker. Every residential loan closes in the name of The Federal Savings Bank.
The savings are direct. On a $600,000 purchase at 3% buyer-side commission ($18,000), up to 30% equals $5,400 back in your transaction. On an $850,000 home, up to $7,650. On a $1,500,000 listing at 3% ($45,000), a seller keeps up to $13,500 in additional net proceeds. No artificial dollar ceiling applies when your loan is coordinated through BuildBuyRefi.com, beyond what your specific loan program and applicable regulations permit. Many lenders internally cap commission credits at $5,000 or $10,000 regardless of what federal regulations actually allow. BuildBuyRefi.com does not impose those artificial internal limits on top of the regulatory ones.
The program is built around a simple premise: real estate agent commissions are negotiable, most consumers never negotiate them, and BuildBuyRefi.com has structured a compliant, internally reviewed way to reduce those fees before you ever sit across from an agent. The commission reduction is pre-negotiated, documented, and integrated into the transaction compliance framework from the start, not discovered as an afterthought at the closing table.
What Makes This the Highest Pre-Negotiated Real Estate Agent Fee Savings Available
Most institutions that connect borrowers with real estate agents collect a referral fee, a marketing services agreement payment, or an internal override on the transaction. That cost reduces the savings available to the consumer. The Federal Savings Bank collects none of those fees, which is structurally why this program can offer a higher pre-negotiated reduction than programs where the referring institution takes a cut.
How Real Estate Agent Fee Negotiation Works and Why Most Consumers Overpay Every Transaction
In a standard residential transaction, the seller pays a total commission to the listing brokerage, typically 5% to 6% of the sale price. That total is then split with the buyer's brokerage at typically 2.5% to 3% per side. Each agent then splits their portion further with their brokerage under internal agreements the consumer never sees and almost never thinks to ask about.
| Purchase Price | Total Commission at 6% | Per Side at 3% | 30% Savings on Buyer Side |
|---|---|---|---|
| $400,000 | $24,000 | $12,000 | $3,600 |
| $600,000 | $36,000 | $18,000 | $5,400 |
| $900,000 | $54,000 | $27,000 | $8,100 |
| $1,200,000 | $72,000 | $36,000 | $10,800 |
| $1,500,000 | $90,000 | $45,000 | $13,500 |
| $2,500,000 | $150,000 | $75,000 | $22,500 |
Most consumers do not negotiate these commissions despite them being fully negotiable. Many do not know they can. Many assume rates are industry standard. Many are introduced to an agent before they ever think about commission structure. This program is the structured alternative that gives you leverage from the start, with a named federally chartered bank behind it.
How to Negotiate Real Estate Agent Commission Before You Sign
Real estate agent commissions are negotiable at the point of engagement, before you sign a representation agreement with any brokerage. Most consumers do not negotiate because they have no documented alternative to present. The BuildBuyRefi.com program gives you a pre-approved, institutionally backed commission reduction as a starting position, which is a fundamentally stronger negotiating tool than asking an agent to voluntarily reduce their income without any external leverage.
The Listing Agent and the Buyer Agent Are Not the Same Thing
Commission savings apply to the specific side of the transaction your participating agent represents. They do not automatically reduce the full commission across both sides of the deal.
The listing agent represents the seller and earns the listing-side commission
The buyer agent represents the purchaser and earns the buyer-side commission
Our participating buyer agent: savings apply to the buyer-side commission
Our participating listing agent: savings apply to the listing-side commission
Both sides handled by the participating firm where state dual-agency rules permit: savings may apply to each side independently
Any outside agent represents a side: BuildBuyRefi.com cannot negotiate that agent's compensation
Commission Reduction vs. Commission Rebate: The Legal Distinction That Matters
A commission reduction lowers the agreed percentage before closing. A commission rebate returns money to the buyer after closing from a commission already fully earned. These are legally and structurally different.
Rebates are prohibited or restricted in several states and can complicate loan program compliance. This program delivers a commission reduction, reflected in the representation agreement or on the Closing Disclosure depending on your state. The Consumer Federation of America maintains a state-by-state guide to commission regulations for independent verification. This distinction matters for compliance, for how the credit appears in your closing documents, and for whether the structure is permissible in states that restrict rebates.
Here is how the sequence works in practice so there is no confusion between those two concepts:
The participating agent agrees to a reduced commission percentage before closing. That is the reduction.
Because the agent is earning less than the full commission amount, the difference becomes available as a credit documented on your Closing Disclosure at settlement.
That credit is applied toward your eligible closing costs, prepaids, or a rate buydown.
The reduction happens at the agent level. The credit is simply how that reduction flows through to you on the closing statement. These are not two separate things - the credit is the delivery mechanism of the reduction, structured within federal disclosure requirements.
Common Misconceptions About Real Estate Agent Commissions - Addressed Directly
Before reviewing program details, it helps to clear up several widely held misunderstandings that prevent consumers from ever asking the right questions about commission negotiation.
Commission rates are private contractual agreements between consumers and brokerages. No federal law sets them. No state licensing board standardizes them. The 5% to 6% figure persisted as an industry norm reinforced by common practice, not legal mandate. The 2024 NAR settlement made this explicit: buyer-agent compensation must now be independently negotiated and disclosed in writing before any showing.
Our participating agents are fully licensed professionals providing the same negotiation, contract management, inspection coordination, disclosure support, and transaction oversight as any traditional brokerage. They have agreed to a pre-negotiated commission structure in exchange for qualified referrals through our platform. Their fiduciary duty to you does not change. You do not trade expertise for savings.
The Federal Savings Bank earns no referral fee from participating agents. Under RESPA Section 8, it is unlawful for any person to give or receive a fee in connection with a real estate settlement service referral. BuildBuyRefi.com earns revenue when The Federal Savings Bank funds a residential mortgage loan. The commission adjustment is negotiated directly between you and the participating real estate firm.
Lender guidelines across all loan types prohibit the use of interested-party contributions toward down payment funds. However, savings applied to closing costs, prepaids, or a rate buydown reduce out-of-pocket cash you would have otherwise spent, which effectively preserves liquidity that can strengthen your down payment from your own reserves.
There is no minimum purchase price. The program is available in all 50 states. Ten states have modified representation agreement requirements that affect how savings are structured in closing documents, but savings remain equally real in those states. The dollar amount is smaller on a lower-priced home because the commission is smaller. The percentage reduction is the same regardless of price.
How the Real Estate Commission Savings Program Works: Three Steps to Reduced Agent Fees
A soft credit pre-qualification does not affect your credit score and does not appear on your credit report. BuildBuyRefi.com reviews your credit profile, income documentation, and loan eligibility to match you with the right loan structure before any agent introduction is made. Pre-qualification is not a loan approval, not a commitment to lend, and does not guarantee specific terms. It is the step that confirms the program is deliverable for your transaction before introductions are made. Your information is handled under our Privacy Policy.
Agent introductions happen only after pre-qualification, protecting you from unnecessary credit inquiries and confirming program eligibility first. The participating agent provides full-service representation: negotiation, contract review, inspection coordination, disclosure management, and transaction oversight from offer to close. You are not managing your own transaction. You are not trading expertise for savings. You get both.
The commission reduction is agreed upon directly between you and the participating real estate firm. In most states it appears on your Closing Disclosure as a credit. In the 10 states listed in the State Application section below, it is reflected in the representation agreement. It is documented, disclosed, and structured within applicable regulatory requirements before closing. The CFPB Closing Disclosure guide explains exactly how credits appear on the settlement statement you receive before closing.
Results are estimates only and are not a guarantee of savings, commission terms, or program eligibility. Actual savings depend on final sale price, commission agreed upon with the participating real estate firm, applicable state regulations, and loan program guidelines. Credits applied toward closing costs are subject to interested-party contribution limits and lender guidelines. Contact BuildBuyRefi.com before entering into a representation agreement to determine eligibility. This tool does not constitute a commitment to lend or an offer of specific loan terms.
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One call confirms whether the program applies to your transaction, loan type, and state. No hard credit pull. No obligation.
What Makes This Commission Savings Program Different From Flat-Fee Brokerages, Rebates, and Discount Models
When consumers search for ways to save on real estate agent fees, they typically encounter three alternatives: negotiating directly with any licensed agent where outcome varies and most consumers lack a documented alternative to present, flat-fee listing services that charge a fixed cost but typically provide minimal service, and rebate-style brokerages that return a portion of earned commission after closing, which is prohibited or restricted in several states and can create loan compliance complications. This program is structurally different from all three.
| Option | Service Level | All 50 States | No Referral Fee | Pre-Negotiated | Loan Compliant |
|---|---|---|---|---|---|
| BuildBuyRefi.com Program | Full Service | Yes | Yes | Yes | Yes |
| Negotiate directly with any agent | Full Service | Yes | Yes | No - outcome varies | Yes |
| Flat-fee listing service | Limited Service | Varies | Yes | Yes | Yes |
| Rebate-style brokerage | Varies | Not All States | Varies | Varies | Varies by loan |
Simplified comparison for consumer education only. Actual service levels and costs vary by market, brokerage, and agreement.
The Math: What You Save on Real Estate Agent Commissions at Real Transaction Sizes
Every calculation below is based on a single transaction. No multi-deal assumptions, no portfolio averages. Each example is for consumer education only and does not represent a guarantee of savings or specific results. Actual savings depend on the final sale price, the commission rate agreed upon with the participating real estate firm, applicable state regulations, and loan program guidelines.
Buyer-Side Commission Savings at Common Purchase Prices
Seller-Side Commission Savings at Common Listing Prices
How to Reduce Closing Costs Using Real Estate Commission Savings
Understanding how the savings physically appear at closing is important before you commit to any strategy. The mechanism depends on your state and your loan type.
Commission Savings as a Closing Cost Reduction Strategy
For most buyers, closing costs are the second largest financial hurdle after the down payment, typically ranging from 2% to 5% of the purchase price. A commission savings credit applied toward those costs is a direct dollar-for-dollar reduction in cash required at closing. On a $600,000 purchase, $5,400 in commission savings applied to closing costs is the equivalent of eliminating a significant portion of lender fees, title charges, and prepaids without touching your down payment.
In Most States: A Credit on the Closing Disclosure
In the majority of states, commission savings appear as a credit on the Closing Disclosure, the federal settlement statement you receive before closing. The CFPB Closing Disclosure guide explains every line of that document. The credit applies toward lender origination fees and underwriting charges, title insurance premiums and title search fees, escrow and settlement charges, prepaid homeowner's insurance, mortgage interest, and property tax escrow where permitted, and discount points for a permanent interest rate reduction where permitted by your loan program.
If allowable closing costs are lower than the commission credit, the participating agent reduces the remaining commission before closing. The savings are restructured, not forfeited. If you want to understand how discount points work and what they actually buy you, the CFPB discount points explainer is the clearest independent source available.
Interested-Party Contribution (IPC) Limits: What They Are, Where They Come From, and Why They Matter
An interested-party contribution (IPC) is any credit toward a buyer's costs from a party with a financial connection to the transaction, including sellers, agents, and builders. Federal guidelines set by Fannie Mae, Freddie Mac, FHA, VA, and USDA cap total IPC amounts by loan program and loan-to-value ratio. Commission savings applied as a closing cost credit function as an IPC and must remain within these caps.
These caps are not set by BuildBuyRefi.com. They are set by the loan program investor and are a federal guardrail designed to prevent purchase price inflation through inflated credits. If a commission credit would exceed the allowable limit, the participating agent reduces the remaining commission before closing. Nothing is lost. The savings are restructured to remain compliant. Navigating these thresholds correctly is one reason our in-house compliance team manages this as part of the transaction structure rather than discovering issues at the closing table.
| Loan Type | Down Payment | IPC Cap | What It Covers |
|---|---|---|---|
| Conventional | Less than 10% | 3% of purchase price | Closing costs, prepaids, rate buydowns |
| Conventional | 10% to 24% | 6% of purchase price | Closing costs, prepaids, rate buydowns |
| Conventional | 25% or more | 9% of purchase price | Closing costs, prepaids, rate buydowns |
| FHA | Any | 6% of purchase price | Closing costs, prepaids, upfront MIP, rate buydowns |
| VA | $0 required | 4% plus actual closing costs | Prepaids, funding fee offset; VA non-allowable fees excluded |
| USDA | $0 required | 6% of appraised value | Closing costs, guarantee fee, prepaids |
| Jumbo / Non-QM | Varies | 2% to 6% by investor overlay | Closing costs; buydowns case by case |
Real Estate Commission Rebate Laws by State: Where Credits Apply and Where Reductions Apply
Ten states require commission savings to be reflected in the representation agreement rather than as a Closing Disclosure credit. The savings are equally real in these states. They are applied contractually before the transaction closes rather than credited at settlement. The Consumer Federation of America maintains an updated state-by-state tracker of commission regulation for independent reference.
| Application | States | How Savings Appear |
|---|---|---|
| Standard 40 States + D.C. | All other states | Closing Disclosure credit per program terms |
| Modified 10 States | Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, Tennessee | Commission reduction reflected directly in the representation agreement before closing |
Commission Savings Compatibility Across All Major Residential Loan Programs
Commission savings can be structured across conventional, FHA, VA, USDA, Non-QM, jumbo, and construction loan types. How the credit is applied and how much can be credited depends on the loan program and loan-to-value ratio as covered in the IPC table above. All loans are subject to underwriting approval, investor guidelines, and applicable state regulations.
| Loan Program | Compatible | Primary Application Notes |
|---|---|---|
| Conventional (Fannie Mae / Freddie Mac) | Yes | Most flexibility in credit application; IPC cap scales with down payment percentage |
| FHA | Yes | High 6% IPC cap; well-suited for lower-down-payment first-time buyers; upfront MIP applies |
| VA (Veterans Affairs) | Yes | Zero down; VA non-allowable fees excluded from credit; funding fee can be offset |
| USDA (Rural Development) | Yes | Zero down; rural property eligibility required; 6% IPC cap of appraised value |
| Jumbo | Case by case | Investor overlays vary; IPC cap typically 2% to 6%; confirm with your loan officer |
| Non-QM | Case by case | Program dependent; confirm structuring with your loan officer |
| Construction Loans | Yes | Land purchase and new construction coordinated through BuildBuyRefi.com; savings apply to represented agent side |
How to Save Money Buying a House: Why This Program Is Especially Valuable for First-Time Homebuyers
Commission savings do not replace down payment assistance or low-down-payment programs. They stack on top, independently reducing the cash required at closing. First-time buyers face the largest gap between what they have saved and what closing actually requires. They are also the least likely to know agent commissions are negotiable, and the most likely to have every dollar of savings matter.
Real Estate Agent Fee Savings for First-Time Buyers: How the Numbers Work
First-time buyers face two simultaneous financial pressures: saving enough for a down payment while also covering closing costs that can add thousands of dollars to what is required on closing day. A pre-negotiated commission reduction directly addresses the closing cost side of that equation without requiring any additional savings, credit improvement, or loan program change. It stacks on top of every program you already qualify for.
The CFPB homebuying guide and the HUD housing counselor locator are independent resources for first-time buyers planning the full path to closing. Free HUD-approved housing counseling is available in every state.
Find Out How Much Your Transaction Could Save
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Advanced Strategy: Applying Commission Savings to Strengthen Your Entire Real Estate Transaction
Reducing Total Cash to Close Without Reducing Your Down Payment
Closing costs typically range from 2% to 5% of the purchase price, the second financial hurdle most buyers underestimate after the down payment. A commission credit applied to closing costs preserves liquidity directly. On a $650,000 purchase with approximately $18,000 in closing costs, a 30% reduction on a 3% buyer-side commission of $19,500 generates a $5,850 credit that reduces required cash to close by nearly a third. For illustration only. Actual results depend on final figures and loan program guidelines.
Using Commission Savings for a Permanent Interest Rate Buydown
One of the most strategic uses of a commission credit is applying it toward a permanent interest rate buydown rather than simply reducing out-of-pocket cash at closing. A discount point costs 1% of the loan amount and typically reduces the interest rate by approximately 0.25%, permanently, for the life of the loan. For buyers who have already saved for closing costs, applying a commission credit toward discount points is consistently the highest long-term financial return use of the savings.
Over a 30-year mortgage, even a modest rate reduction compounds significantly in your favor. For buyers expecting to sell or refinance within five to seven years, applying the credit toward closing costs to preserve cash usually makes more sense. Your loan officer can model both options at the time of your rate lock so you can choose based on how long you plan to stay in the home. The CFPB discount points explainer walks through exactly how this mechanism works.
The Move-Up Seller: Commission Savings on the Sale Strengthen the Purchase
Sellers simultaneously buying a new home benefit twice: increased net proceeds at closing from the reduced listing commission, and a reduced mortgage balance on the next purchase if those proceeds are applied forward. On a $900,000 listing, $8,100 in additional net proceeds applied to a subsequent $1,100,000 purchase reduces the loan principal directly. That reduction lowers both the monthly payment and total long-term interest exposure. Commission savings on the sale become mortgage savings on the purchase, and the benefit compounds across both transactions.
Using Commission Savings to Strengthen Loan Qualification
Commission savings that reduce a loan balance also lower the monthly payment, which lowers the debt-to-income ratio. For a buyer near qualification thresholds, a modest reduction in loan amount from applied commission savings can be the difference between a conditional approval and a clean one. This is a structural advantage for buyers working at the edge of their qualification window, not a theoretical one.
Commission Savings in Move-Up, Move-Down, and Multi-Transaction Scenarios
Over time, repeated commission payments materially affect net worth. A homeowner who buys and sells three times over fifteen years with average property values between $500,000 and $900,000 may preserve $30,000 to $60,000 or more in net commission savings if each transaction includes a 30% reduction. Those preserved dollars, reinvested into lower mortgage balances, rate buydowns, or retirement savings, compound across years into material wealth that unreduced commissions quietly eliminate.
Using This Program as Leverage With Your Current Agent
Not every consumer needs to switch agents. Some choose to present BuildBuyRefi.com's program terms to their existing agent and request a matching commission reduction to stay in place. Commission is negotiable. Agents may choose to match rather than lose the business. A pre-approved, documented alternative with a named federally chartered bank behind it is a real negotiating position, not a bluff. If your current agent matches the terms, the program has still served its purpose.
Eligible Property Types: Every Style of Real Estate We Finance
BuildBuyRefi.com finances more property types than most banks in the country. The commission savings program applies to any property type where a participating agent represents your side of the transaction. If we finance it, the program applies to it.
Residential Properties - Primary, Second Home, Investment, and Vacation
Single-family residences - primary, second home, vacation, and investment
Townhomes and rowhouses
Condominiums (subject to lender warrantability guidelines)
2-unit, 3-unit, and 4-unit multi-family residential properties (owner-occupied and investment)
New construction - site-built, spec, and custom homes
Land purchases - including lots being coordinated for future construction through BuildBuyRefi.com
Luxury and high-value properties (Jumbo)
Investment-only residential properties
Second homes and vacation properties
Factory-Built, Modular, and Manufactured Housing
Manufactured homes - single-wide, double-wide, and triple-wide on permanent foundations
Modular homes - single-family and modular duplex configurations
Pre-fabricated and panelized construction
Barndominiums and barn-style residential conversions
Log cabins and log home construction
Timber frame homes
3D-printed residential structures
SIP (Structural Insulated Panel) construction
ICF (Insulated Concrete Form) construction
Earth contact homes and earth-sheltered construction
Dome homes and geodesic structures
Specialty and Alternative Residential Structures
A-frame homes
Container homes (when titled as real property)
Rural residential properties eligible for USDA financing
Veteran-eligible properties qualifying for VA loans
Owner-builder and self-build coordination where permitted
Properties with agricultural components that qualify for residential financing
Credit Score and Loan Qualification Requirements by Loan Program
The Commission Savings Program itself does not have a standalone credit score requirement. Your qualification is determined by the mortgage loan program you are applying for, which follows standard investor guidelines. Here is a general reference for loan types available through BuildBuyRefi.com.
| Loan Type | Minimum Credit Score | Minimum Down Payment | General Max DTI |
|---|---|---|---|
| Conventional | 620 standard / 680 for best pricing | 3% | 45% to 50% |
| FHA | 580 for 3.5% down / 500 for 10% down | 3.5% with 580 or above | 43% to 57% with compensating factors |
| VA | No official minimum; 580 preferred | $0 | 41%; flexible with residual income |
| USDA | 640 for automated / 580 to 639 manual | $0 | 29% housing / 41% total |
| Jumbo | 700 and above; varies by investor | 10% to 20% | 43% to 45% |
| Non-QM | 580 and above; varies by program | Varies by program | Varies by program |
| Construction | 640 and above typical | Varies by program | Varies by program |
Consumers can verify licensing information and confirm our status as a federally chartered lender at any time through the NMLS Consumer Access portal using NMLS# 411500.
Optional Access to Up to $50,000 in Consumer Loan Funds: Separate From Commission Savings
Commission savings and the optional consumer loan program are completely separate. Every qualified buyer and seller may access commission savings through the participating real estate firm regardless of consumer loan eligibility.
For borrowers who do qualify, the optional unsecured consumer loan provides access to up to $50,000 in funds that may be used for home improvements, debt consolidation, transaction-related expenses, or liquidity needs. Approval is subject to underwriting review. Not all consumers will qualify. Subject to credit approval. Full details are available at buildbuyrefi.com/client-consumer-loan.
Regulatory Transparency, RESPA Compliance, and Program Governance
BuildBuyRefi.com operates this program under the requirements of the Real Estate Settlement Procedures Act (RESPA) and all applicable state lending and real estate laws. Transparency on this is not optional. It is foundational to how the program was designed and how it has been reviewed internally for compliance before being offered to consumers.
No referral fees received. Under RESPA Section 8(a), it is unlawful for any person to give or receive a fee in connection with a real estate settlement service referral. The Federal Savings Bank receives no referral fee from participating agents. BuildBuyRefi.com earns revenue only when The Federal Savings Bank funds a residential mortgage loan.
Commission reductions are negotiated directly between the consumer and the participating firm. The commission adjustment is agreed upon directly between you and the participating real estate firm after pre-qualification and introduction through BuildBuyRefi.com. It is not routed through the bank and does not involve any compensation to the bank for the introduction.
Closing Disclosure compliance. Credits are disclosed on the Closing Disclosure in accordance with federal disclosure requirements. The HUD RESPA overview provides an independent consumer-facing explanation of how these protections work and what rights consumers have under the Act.
Federal regulatory oversight. The Federal Savings Bank is examined by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and applicable state banking regulators. Licensing is verifiable at any time at nmlsconsumeraccess.org using NMLS# 411500.
Program governance. This program is owned and maintained by the compliance and lending operations teams of The Federal Savings Bank operating under the BuildBuyRefi.com brand. Page content is reviewed by the compliance team before publication and updated periodically to reflect regulatory changes, loan program updates, and state-level rule changes. If you identify information you believe may be outdated or inaccurate, contact us directly using the consumer support information below.
This page is provided for consumer education and program explanation. It is not legal advice. Consumers with specific legal or tax questions should consult appropriate licensed professionals.
Consumer education resources from independent regulatory authorities: CFPB - consumerfinance.gov | HUD - hud.gov | NMLS Consumer Access
What the NAR Settlement Means for Buyer Agent Fees and Why This Program Is More Relevant Now
In March 2024, the National Association of Realtors agreed to a landmark $418 million settlement that changed how buyer-agent commissions are disclosed and negotiated across the country. Effective August 17, 2024, MLS rules no longer allow seller-side agents to offer buyer-agent compensation through the MLS, and buyers must now sign written representation agreements with compensation terms explicitly stated before touring any home.
The Department of Justice Antitrust Division, which has advocated for greater commission transparency for years and submitted a statement of interest in the underlying litigation, has long held that consumer choice in real estate services should be expanded and that commissions should compete openly in the market.
This shift created the regulatory environment in which the BuildBuyRefi.com program operates most cleanly. The commission reduction is pre-negotiated before your representation agreement is signed, exactly what the new rules require. You can read the NAR settlement FAQ and the Consumer Federation of America analysis of commission reform for independent context on what these changes mean for you.
One important nuance the settlement created: in many transactions today, sellers are offering little or no buyer-agent compensation through the MLS, leaving buyers responsible for negotiating and funding their own agent's commission directly. This program addresses that scenario directly.
By pre-negotiating a reduction on the buyer-agent commission before any representation agreement is signed, buyers using this program enter the transaction with a lower agreed commission from the start - which reduces the out-of-pocket cost they would otherwise carry, regardless of what the seller is or is not offering on the other side.
How BuildBuyRefi.com Makes Money and What That Means for You
Transparency matters when discussing financial decisions. The Federal Savings Bank earns revenue when residential mortgage loans are funded through BuildBuyRefi.com. BuildBuyRefi.com does not receive referral fees from participating real estate firms for connecting consumers with agents.
Commission reductions are agreed upon directly between you and the participating real estate firm after you are prequalified and connected. The bank and the commission adjustment are kept structurally separate by design, in compliance with RESPA's prohibition on fee-splitting arrangements connected to settlement service referrals. Consumers are encouraged to ask questions and review all agreements before proceeding. If you have questions not answered here, call 844-999-0639 before committing to anything.
Important Considerations, Limitations, and Consumer Disclosures
Timing is mandatory. You must contact BuildBuyRefi.com before signing a representation agreement with another brokerage. Once signed, the program cannot be applied retroactively.
Savings apply to the represented side only. Commission reductions apply only to the side of the transaction your participating agent represents.
State application rules vary. In most states savings appear on the Closing Disclosure. In Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee, the reduction is applied within the representation agreement.
Loan program contribution limits apply. Credits must remain within interested-party contribution limits for your loan type and LTV ratio as shown in the IPC table above. Set by Fannie Mae, Freddie Mac, FHA, VA, and USDA, not by this program.
Savings cannot be applied to down payment. Lender guidelines across all loan types prohibit the use of interested-party contributions toward down payment funds.
Residential loan approval is not guaranteed. Pre-qualification is a first step, not a loan commitment or guarantee of specific terms.
Optional consumer loan approval is not guaranteed. The unsecured consumer loan program is separate from commission savings and subject to independent underwriting. Not all consumers will qualify. Subject to credit approval.
Program rules may change. State regulations and loan program guidelines evolve. Verify current requirements before entering any representation agreement.
All savings examples are illustrative only. Dollar figures in this document are for consumer education only and do not represent guaranteed results. Actual savings depend on final sale price, agreed commission rate, loan program, and applicable state regulations.
Need Help Understanding How the Program Applies to Your Transaction?
Our licensed loan officers can walk you through exactly how commission savings apply to your purchase scenario, loan type, and state. No sales pressure. No obligation. Most consultations take 15 to 20 minutes and give you a clear picture of your estimated savings and how they can be structured within your transaction.
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Frequently Asked Questions About the BuildBuyRefi.com Real Estate Commission Savings Program
Is reducing real estate agent fees legal in all 50 states?
Yes. Real estate commissions are fully negotiable in all 50 states. They are contractual agreements between consumers and brokerages, not rates mandated by federal law. The Department of Justice has specifically recognized the right of consumers to negotiate. The 2024 NAR settlement reinforced that buyer representation agreements must be negotiated and disclosed transparently before any tour or showing. Commission reduction has always been legal. The new rules simply make the process more transparent.
Is this a commission rebate or a commission reduction?
This is a commission reduction, not a rebate. A rebate returns money after closing from a commission already fully earned and is prohibited or restricted in several states. A reduction lowers the percentage agreed upon before closing, reflected in the representation agreement or on the Closing Disclosure depending on your state. This structure is legal in all 50 states, including states where post-closing rebates face restrictions, because the savings occur before the commission is fully earned rather than after.
How much can I save on my real estate agent commission through this program?
Up to 30% of the commission on the side your participating agent represents. To calculate your estimate: multiply your purchase or sale price by the commission rate (typically 2.5% to 3%), then multiply by 30%. Examples: $500,000 at 3% equals $15,000 in commission, times 30% equals $4,500 in potential savings. $900,000 at 3% equals $27,000 in commission, times 30% equals $8,100 in potential savings. Savings scale with price with no artificial ceiling when coordinated through BuildBuyRefi.com beyond what your loan program permits. Use the Commission Savings Estimator above to run your specific numbers.
What does "represented side" mean in the context of this program?
It means the side of the transaction where the participating agent is your agent of record. If the participating agent is your buyer agent, savings apply to the buyer-side commission. If the participating agent is your listing agent, savings apply to the listing-side commission. If both sides of the transaction are handled by the participating firm where state dual-agency rules permit, savings may apply to each side independently. If any outside agent represents a side, BuildBuyRefi.com cannot negotiate that agent's compensation.
Can commission savings apply to both my purchase and my sale?
Yes, independently. If both transactions are handled through the participating real estate firm, the commission reduction applies to each represented side separately, calculated independently based on each transaction's price and agreed rate. Use the "Buying and Selling" toggle in the Commission Savings Estimator above to see the combined estimate for both transactions at once.
Does this program violate RESPA or any federal lending laws?
No. No remuneration is paid to BuildBuyRefi.com or The Federal Savings Bank for connecting you with a participating agent. Commission reductions are negotiated directly between you and the participating real estate firm. Credits are disclosed on the Closing Disclosure per federal disclosure requirements. The HUD RESPA overview at hud.gov/program_offices/housing/ramh/res/resapage is an independent consumer reference for how RESPA protects consumers in settlement transactions. This page does not provide legal advice. Consumers with specific legal questions should consult appropriate counsel.
Does BuildBuyRefi.com earn money when it refers me to a participating agent?
No. BuildBuyRefi.com earns revenue when The Federal Savings Bank funds a residential mortgage loan, not when it introduces you to a participating agent. No referral fee is paid to the bank or any banker for agent introductions. The commission adjustment is negotiated directly between you and the participating real estate firm after pre-qualification and introduction.
Is there a minimum home price for the commission savings program?
No. Commission savings apply equally regardless of home price. There is no minimum purchase price requirement. The dollar amount saved is smaller on a lower-priced home because the commission is smaller, but the percentage reduction is the same, and the program is available on all eligible transactions regardless of price.
Is there a maximum dollar cap on what I can save?
When your loan is coordinated through BuildBuyRefi.com, there is no artificial cap beyond what your specific loan program and applicable state regulations allow. Many lenders internally limit commission credits at $5,000 or $10,000 regardless of what federal regulations actually permit. Those caps protect operational simplicity, not consumer interests. BuildBuyRefi.com does not impose those internal limits. Higher-value transactions benefit proportionally with savings that scale to transaction size.
What if my closing costs are lower than the commission credit amount?
The participating agent reduces the remaining commission before closing so the transaction stays within required thresholds. The savings are restructured, not forfeited. Your loan officer identifies this situation early in the transaction and structures the allocation to maximize benefit within applicable limits. You do not lose savings because of a mismatch between credit size and allowable costs.
Can I use the commission credit to buy down my interest rate?
Yes, in most cases, subject to loan program guidelines. Each discount point costs 1% of the loan amount and typically reduces the rate by approximately 0.25%, permanently, for the life of the loan. The CFPB discount points explainer at consumerfinance.gov walks through exactly how this works. Your loan officer can model both the closing cost credit option and the rate buydown option at the time of your rate lock so you can choose based on your financial goals and how long you plan to hold the loan.
Does this work with FHA, VA, USDA, Conventional, Jumbo, and Non-QM loans?
Yes. Commission savings can be structured across these loan types. Credit limits and how savings appear at closing depend on the specific loan program and LTV ratio. See the Interested-Party Contribution Limits table and the Loan Program Compatibility table above for program-by-program detail. All loans are subject to underwriting approval and applicable investor guidelines.
Does this program work for first-time homebuyers specifically?
Yes, and it is particularly valuable for first-time buyers because closing costs are often the largest barrier after the down payment, and first-time buyers are the least likely group to know agent commissions are negotiable. Commission savings layer on top of down payment assistance programs, FHA loans, VA loans, and USDA loans independently, reducing cash required at closing without affecting those programs. See the First-Time Homebuyer section above for FHA, VA, and USDA scenarios with specific dollar examples.
I already have a real estate agent. Can I still use the program?
Only if you have not yet signed a buyer representation agreement or listing agreement with that agent. Once an exclusive representation agreement is signed with another firm, the program cannot be applied retroactively to that transaction. However, you can use the BuildBuyRefi.com program terms as documented leverage to request a matching commission reduction from your current agent. Agents may agree to match rather than lose the business. Contact us before signing anything to preserve all available options.
Can I switch agents mid-transaction?
In some cases, yes, by mutual release of the existing representation agreement. This is handled case by case depending on the specific terms of your current contract. The most reliable path is always to contact BuildBuyRefi.com before signing with any other brokerage. Preventing the need to switch is why the timing rule exists.
Does this apply to investment properties, second homes, land, manufactured homes, and commercial transactions?
Residential investment properties, second homes, and vacation properties are eligible when represented by a participating agent and coordinated under program rules. Land purchases being coordinated for construction through BuildBuyRefi.com are eligible. Manufactured homes on permanent foundations are eligible; manufactured homes on leased land requiring chattel financing may involve a specialty lender for the financing portion, but agent representation and commission savings may still apply. Commercial commission savings are generally available only to active clients coordinating their broader relationship through our platform. Residential remains the core focus of this program.
What property types does the program cover?
All real estate types financed by BuildBuyRefi.com are eligible, including single-family homes, condos, townhomes, multi-family up to 4 units, new construction, barndominiums, log cabins, timber frame, 3D-printed homes, SIP, ICF, modular homes, manufactured homes (single-wide, double-wide, and triple-wide on permanent foundations), earth contact homes, dome homes, luxury properties, and land coordinated for construction. See the full Eligible Property Types section above for the complete list.
What if I am not ready to buy or sell yet?
You can still estimate your potential savings using the Commission Savings Estimator above and complete a soft pre-qualification now. No hard credit pull. No commitment. No obligation. It simply ensures you are eligible, informed, and protected when the right timing arrives. The only thing that permanently ends eligibility for a given transaction is signing with another brokerage first.
Is the optional $50,000 consumer loan required to access commission savings?
No. The consumer loan program is optional and completely separate from commission savings. Not all consumers will qualify for the consumer loan. Subject to credit approval. Every qualified buyer and seller may access commission savings through the participating real estate firm regardless of consumer loan eligibility.
When do I need to contact BuildBuyRefi.com to protect my eligibility?
Before signing a buyer representation agreement or listing agreement with any other brokerage. The moment you sign an exclusive representation agreement with another firm, your eligibility for that transaction ends. There is no workaround, no retroactive application, and no exception. The earlier you contact us, the more options you have. Call 844-999-0639 or visit buildbuyrefi.com/check-eligibility before signing anything.
Start Your Eligibility Check Today - Before You Sign Anything
The only thing that ends your eligibility is signing with another brokerage first. If you have not signed yet, call us or check online to find out exactly how much you could save on your specific transaction.
Check Eligibility at BuildBuyRefi.com
or call a licensed loan officer
Evaluating the Full Cost of Your Real Estate Transaction
Real estate commissions are one of the largest controllable expenses in a property transaction. Most consumers focus heavily on interest rates, down payments, and market timing. Very few evaluate transaction costs with the same level of scrutiny they apply to everything else in a purchase this size. When commission reduction is structured legally and professionally, it may preserve thousands or tens of thousands of dollars per transaction. Over a lifetime of buying and selling property, those preserved dollars compound into material wealth that unreduced commissions quietly eliminate one transaction at a time.
This Real Estate Commission Savings Program was developed to create a structured, compliant, and nationally available method for reducing real estate agent fees without sacrificing professional representation. It operates within regulatory guidelines. It does not involve referral fees paid to the bank or to bankers. It does not require flat-fee or limited-service representation. It preserves full-service advocacy while improving financial efficiency at every transaction size, from a $200,000 first home to a $5,000,000 estate.
When the residential loan program you need is available through BuildBuyRefi.com, a division of The Federal Savings Bank, financing is coordinated internally to preserve the full commission savings structure and integrate it cleanly into underwriting, closing disclosure preparation, and compliance review. The institution is not a broker. It underwrites, funds, and services its own loans. That integration is what allows this program to function without the artificial caps that other lenders layer on top of regulatory limits.
Protect your eligibility before signing any representation agreement. Call 844-999-0639 or start your qualification at buildbuyrefi.com/check-eligibility. Our team can walk you through exactly how the program applies to your transaction and confirm eligibility before you commit to another firm.
Sources and External References
Consumer Financial Protection Bureau (CFPB) Owning a Home Resource Center: consumerfinance.gov/owning-a-home
CFPB - Closing Disclosure Consumer Guide: consumerfinance.gov - Closing Disclosure guide
CFPB - Discount Points and Lender Credits Explainer: consumerfinance.gov - discount points and rate buydowns
U.S. Department of Housing and Urban Development (HUD) RESPA Consumer Overview: hud.gov - RESPA consumer guide
HUD - Housing Counselor Locator (free HUD-approved counselors in all states): hud.gov - housing counselor locator
U.S. Department of Justice - Antitrust Division, Real Estate Competition Resources: justice.gov/atr
Consumer Federation of America - State-by-State Commission Regulation and Rebate Tracker: consumerfed.org
National Association of Realtors 2024 Settlement FAQ and Buyer Representation Changes: nar.realtor/the-facts
Fannie Mae - Selling Guide, Interested Party Contributions: selling-guide.fanniemae.com
NMLS Consumer Access - Verify Licensing Using NMLS# 411500: nmlsconsumeraccess.org
ManufacturedNationwide.com - Manufactured Home Financing Options: manufacturednationwide.com
BuildBuyRefi.com is a division of The Federal Savings Bank | NMLS# 411500 | Member FDIC | Equal Housing Lender | Veteran-Owned | 4120 West Diversey Avenue, Chicago, IL 60639.
This page is provided for consumer education and program explanation. It is not legal advice. Consumers with specific legal or tax questions should consult appropriate licensed professionals. Commission savings estimates are illustrative and based on a 30% reduction in the buyer or seller agent commission on the represented side; actual savings will vary based on purchase price, agreed commission rate, loan type, and applicable lender and state guidelines. Commission savings cannot be applied toward down payment. Interested-party contribution limits apply and are determined by loan type and loan-to-value ratio as set by applicable loan program investors. Program availability and savings structuring vary by state. All loan products are subject to credit approval, income verification, property appraisal, and applicable lender and investor guidelines. Pre-qualification is not a loan approval or guarantee of specific loan terms. The Federal Savings Bank is not a licensed real estate broker or agent. Commission reductions are negotiated directly between the consumer and the participating real estate brokerage in accordance with applicable state real estate regulations.
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