What is Seller Concession?

Seller concessions is a credit towards your closing cost from the seller. It allow you to pay less at closing to make buying a home more affordable. Seller concessions can reduce your closing cost significantly and help you bring less money to closing, so you don’t have to use all of your savings to purchase your home.

How much can you receive?

Conventional Loans

The limit for conventional loans depends on how much you’re putting down:

  • If your down payment is less than 10%, the seller can contribute up to 3%.

  • If your down payment is 10% – 25%, the seller can contribute up to 6%.

  • If your down payment is more than 25%, the seller can contribute up to 9%.

  • If you’re buying an investment property, the seller’s contribution is limited to 2%, no matter what your down payment is.

FHA Loans

For all FHA loans, the seller can contribute up to 6%.

USDA Loans

For USDA loans, the seller can contribute up to 6% of the buyer’s loan amount. This is the one loan type where the seller concessions are not based on the home price or appraised value. Rocket Mortgage® does not offer USDA loans at this time.

VA Loans

VA loan rules dictate that the seller can contribute up to 4%. Seller concessions on VA loans may include payments toward a buyer’s judgments and debts, as well as VA funding fees.

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