What is the maximum seller concession allowed?

Conventional: 3% (LTV > 90%), 6% (75-90% LTV), 9% (below 75%). FHA: 6%. VA: 4%. These limits exist to prevent inflated appraisals from seller-paid concessions.

Does a seller concession affect the purchase price?

Technically no — the purchase price stays the same, but the seller provides a credit at closing. However, appraisers look at net effective price. Concessions above market norms can cause appraisal issues.

When should I ask for seller concessions vs a lower price?

Concessions are preferable when cash to close is the constraint. A lower price reduces the loan amount and monthly payment but requires the same cash. Concessions reduce cash needed without changing the loan amount significantly.

Seller Concession Value Calculator

Calculate the net cost/benefit of requesting seller concessions to cover closing costs. Shows how concessions affect net purchase price vs out-of-pocket cash needed.

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Frequently Asked Questions

What is the maximum seller concession allowed?

Does a seller concession affect the purchase price?

When should I ask for seller concessions vs a lower price?