Seller Concessions

Seller concessions are negotiated funds that a property seller agrees to credit toward the homebuyer’s settlement expenses at closing. These funds can cover closing costs, title charges, appraisal fees, prepaid property tax escrows, or interest rate buydown points, directly lowering the liquid cash a buyer needs on closing day. Contribution limits are strictly capped by loan program guidelines (e.g., up to 3% to 9% on conventional loans depending on down payment, 6% on FHA and USDA, and 4% on VA loans). Concessions cannot be used toward the buyer’s minimum required down payment.