Seller Concessions

Seller concessions are contributions from the seller toward the buyer’s closing costs. These concessions are subject to limits based on the loan type and occupancy.

General Guidelines

• Seller concessions cannot exceed the buyer’s actual closing costs
• Concessions are calculated as a percentage of the purchase price
• If concessions exceed allowable limits, the purchase price must be reduced or the buyer forfeits the unused credit

Conventional Loans (Fannie Mae & Freddie Mac)

Primary Residence / Second Home

• 10% down payment or less: maximum 3%
• 11%–25% down payment: maximum 6%
• More than 25% down payment: maximum 9%

Investment Property

• Maximum 2%

VA Loans

• Primary residence: maximum 4%

FHA Loans

• Primary residence: maximum 6%

Understanding seller concession limits can help you structure a stronger offer and reduce your out-of-pocket costs at closing.

Need help structuring your offer? Contact us to make sure you're maximizing your benefits while staying within loan guidelines.