Can you be a mortgage broker and a real estate agent?

These days finding a way to keep a competitive edge never hurts.  And for people working in the real estate industry, becoming both a licensed mortgage broker and a licensed real estate agent can be appealing.  So, can you be a mortgage broker and a real estate agent?  The short answer is yes, you can.  However, there are some regulations that you should be aware of if this is something you are considering.

First, let’s explain the difference between the two.

Real estate agents are licensed individuals who represent home buyers and home sellers.  They also have a strong knowledge of the geographical location where they buy or sell properties, the pros and cons of living in each part of town, knowledge of the local school districts, and a strong overall background in the real estate field.  Additionally, they are often familiar with comparable prices in the neighborhood and potential issues that may arise regarding titles, zoning, or legal matters.  And while they do not need to be an expert, having a basic understanding of conventional loans, FHA loans, USDA loans, and VA loans helps.  Also, real estate agents often hold a special certification in addition to their license.

On the other hand, a mortgage broker is essentially a middleman between the borrower or homeowner and the bank/mortgage lender. Those individuals who are licensed mortgage brokers work directly with both the consumer and the bank to help consumers qualify for a mortgage, whether it’s a purchased mortgage or a refinance mortgage.

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Now, here are the regulations you need to know.

In most parts of the United States, individuals who are both realtors and mortgage loan officers are in demand.  When attempting to get new customers, many sellers are inclined to select a real estate agent who is also a licensed mortgage broker, due to their professional credentials. However, keep this in mind if you want to know if you are trying to answer: can you be a mortgage broker and a real estate agent?

  • Real estate agents who have real estate clients can help them with their loan, but only if it is not an FHA loan
  • To be clear, a real estate agent cannot originate FHA loans if it’s for one of their own real estate clients
  • Real estate agents can, however, originate conventional loans, jumbo loans, portfolio loans, or commercial loans for their own real estate clients, just as long as it’s not an FHA loan
  • When the real estate client is not one of their own, then the individual with a dual license can originate FHA loans, VA loans, or USDA loans.

While not all-encompassing, this list provides some insight as to the most common legal issues that someone with a dual license would want to avoid.  If this is something that you choose to proceed with, please let us know how it goes.

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So, can you really be a mortgage broker and a real estate agent?  What do you think? Are there pros and cons that you’ve experienced in your real estate career? Our readers would love to hear from you.  Please share your thoughts and idea by commenting below.