Seller concessions

This week’s product message is about seller concession do’s and don’ts-

There is a maximum percentage of sale price cap on seller concessions based on loan type, downpayment and occupancy:

Conventional Loans-

     Loan to value 90.01%+=3%

     Loan to value 75.01-90%=6%

     Loan to value 75% or below=9%

     FHA Loans- Max 6% all loan to values

    VA Loans – 4% closing costs and points

    USDA Loans- No max seller contribution*

                              Closing costs can be financed up to 100% of appraisal                            

Non-Owner occupied 2% Max all LTV’s

FNMA Hompath follow standard max
Except up to 6% allowable
with LTV 90%+

*some investors may have an internal policy limiting seller contribution to 6%.

I hope you find this information helpful when negotiating contracts on behalf of your buyers.

I look forward to working with your clients!


About lizschneider66

Mortgage consultant with over 19 years experience. First time buyers, move up buyers, construction, FHA/VA, Jumbo loans, investment property purchases, & refinances- I will find the solution to financing the American dream of homeownership! Subscribe to my blog and never miss any mortgage industry news. I am Vice President of the North Coast Building Industry Association, Lorain County Association of Realtors, Working Women Connection and Womens Council of Realtors.
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