How Home Sellers can help Home Buyers

Seller Concessions

When home seller pays costs on the home buyer’s behalf.

Title Insurance, Processing fees, Origination fees,  Inspection fees, Transfer taxes, etc.


Seller Concessions can differ with each financing type or transaction purpose. i.e. primary residence, second or vacation home or investment property.



Great strategy to decrease cash to close for a Home Buyer!


  • FHA and Rural Development: 6% of the purchase price is the MAXIMUM seller concessions to be used for closing costs and prepaid items.


  • Conventional Financing: 6% MAXIMUM seller concessions for a 10% or more as a down payment.


  • If the borrower is putting less than 10% down payment, the MAXIMUM seller concessions are 3% of the purchase price.


  • If the borrower is putting 20% or more as a down payment the MAXIMUM seller concessions will increase to 9% maximum allowable concessions.


  • Conventional Financing for an investment property will be limited to 2% of the purchase price.

Strategize and plan for a smooth home purchase!


Information provided by Victor Bals Team of Huron Valley Financial