How much can the seller pay toward conventional closing costs?
Conventional seller-concession caps depend on occupancy and LTV. Primary residence and second home: 3% of price at >90% LTV; 6% at 75.01-90% LTV; 9% at ≤75% LTV. Investment property: 2% regardless of LTV. Concessions cover closing costs and prepaids — not down payment.
What this actually means.
The percentages are caps on what Fannie/Freddie allow as 'interested party contributions' (seller, builder, agent). Above the cap, the excess reduces the loan amount or sales price. In a softer market, a 6% seller credit at 80% LTV can cover most or all of a buyer's closing costs and prepaids. Subject to Fannie/Freddie guidelines.
Where this can move.
Title and escrow fees, Florida doc stamps, intangible tax, prepaids, lender fees, and any seller or lender credits can change cash to close.
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More conventional questions on Closing Costs.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.