How much can the seller contribute on FHA?
Up to 6% of the sales price toward the buyer's closing costs and prepaids. More than that is excess and reduces the loan amount or sales price.
What this actually means.
Compare with conventional, where the cap is 3% at higher LTVs and 6% at 75–90% LTV. FHA's 6% cap at high LTV is a real advantage for cash-tight buyers.
Where this can move.
Gift source and donor eligibility, seller credit limits, down payment assistance program rules, and source-of-funds documentation can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.