Conventional loans
For a conventional primary home, seller credits are generally limited to 3% to 9%, depending on the down payment. For a conventional investment property, the limit is generally 2%.
Buying a Home
Seller Credit Limits by Loan Program
It depends on the loan program, down payment, and occupancy, because mortgages could never just give us one simple answer.
FHA, USDA, and VA
FHA and USDA generally allow up to 6%. VA generally allows up to 4% in seller concessions, plus certain allowable closing costs.
What seller credits can cover
Seller credits can help cover eligible closing costs, prepaid taxes, insurance, and sometimes a rate buydown. They cannot exceed your actual allowable costs, and you do not get the leftovers as cash.
Run the numbers before the offer
Let me calculate the useful amount before you write the offer so you ask for the right number, not too little and not a generous donation back to the seller.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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