<10% Down: What is the maximum seller contribution?

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Multiple Choice

<10% Down: What is the maximum seller contribution?

Concessions are funds the seller can contribute toward the buyer’s closing costs. For a conventional loan with a 10% down payment (meaning a 90% loan-to-value), the typical cap on seller concessions is 3% of the purchase price. This limit helps ensure the loan reflects the appraised value and that the down payment remains meaningful, while still allowing some seller help with closing costs. So the maximum seller contribution in this scenario is 3% of the purchase price. Higher percentages would exceed standard conventional loan limits, and claiming that no concessions are allowed would be incorrect here.

Concessions are funds the seller can contribute toward the buyer’s closing costs. For a conventional loan with a 10% down payment (meaning a 90% loan-to-value), the typical cap on seller concessions is 3% of the purchase price. This limit helps ensure the loan reflects the appraised value and that the down payment remains meaningful, while still allowing some seller help with closing costs. So the maximum seller contribution in this scenario is 3% of the purchase price. Higher percentages would exceed standard conventional loan limits, and claiming that no concessions are allowed would be incorrect here.

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