Seller Financing Guide
Seller concession limits
The maximum a seller can contribute toward a buyer’s costs, by loan program and down payment.
Conventional
Primary & secondary home
Closing costs, prepaid items & discount points
Less than 10%
10% – 25%
More than 25%
Conventional
Investment
Closing costs, prepaid items & discount points
15% or more
FHA
Primary
Closing costs, prepaid items & discount points
3.5% or more
Excess contributions reduce the sale price dollar-for-dollar before LTV is calculated.
VA
Primary
Closing costs, prepaids & up to 2 discount points
Down payment
N/A
VA
Primary
Funding fee, extra discount points & debt payoff
Down payment
N/A
VA splits its treatment: standard buyer costs may be paid in full by the seller; only "concession" items (funding fee, extra points, payoff of buyer debts, gifts) count toward the 4% cap.
USDA
Primary
Closing costs, prepaid items & discount points
N/A
Eligible rural primary residence only.