What is the maximum seller contribution for loans with 10% to 24.9% down?

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Multiple Choice

What is the maximum seller contribution for loans with 10% to 24.9% down?

Seller concessions are the seller’s contributions toward closing costs, prepaid items, and points, and the amount allowed depends on the type of loan and the buyer’s down payment. For conventional loans, if the down payment is at least 10%, the seller can contribute up to 6% of the purchase price. The range in question (10% to 24.9% down) falls into this bucket, so the maximum is 6% of the purchase price. A smaller down payment (below 10%) would cap concessions at 3%, while options like no concessions or a higher 9% cap don’t fit these conventional-loan rules.

Seller concessions are the seller’s contributions toward closing costs, prepaid items, and points, and the amount allowed depends on the type of loan and the buyer’s down payment. For conventional loans, if the down payment is at least 10%, the seller can contribute up to 6% of the purchase price. The range in question (10% to 24.9% down) falls into this bucket, so the maximum is 6% of the purchase price. A smaller down payment (below 10%) would cap concessions at 3%, while options like no concessions or a higher 9% cap don’t fit these conventional-loan rules.

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