After you've already been pre-approved for a mortgage buy your lender, the next thing to do is find that perfect home within that mortgage limit. Sellers can contribute credit to you as a buyer as a part of your negotiated purchase and sales contract. However, different loan types has different limits a seller can contribute and to the type of contribution it can be made. As of today, these are the concession breakdowns:
Loan Type Property Type Contribution Type Down Pmt Options Max Seller Contributions
FHA Primary Closing Cost, Prepaid Terms 3.5% or more Up to 6%
& Discount Points
VA Primary VA Funding Fee, Prepaid Items N/A Up to 4%
Buydown Funds, Discount Pts(-2)
Personal Property, Debts
Conventional Primary & Secondary Closing Cost, Prepaid Items Up to 10%, 10-25% Up to 3%, Up to 6%
& Discount Pts More than 25% Up to 2%
Conventional Investment Closing Cost, Prepaid Items 15% or more Up to 2%
