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.
Plain-English explanation
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.
What can change the answer?
Title and escrow fees, Florida doc stamps, intangible tax, prepaids, lender fees, and any seller or lender credits can change cash to close.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.