How much can a seller pay toward VA closing costs?
VA's 'seller concession' cap is 4% of the loan amount for non-allowable items like prepaids, the funding fee, and discount points beyond reasonable. Sellers can also pay normal allowable closing costs separately — those don't count against the 4% concession bucket.
What this actually means.
Two buckets matter on VA: 1) normal customary closing costs the seller pays under the contract (allowable lender fees, title, recording) — usually no VA cap; 2) seller concessions for prepaids, funding fee, or discount points — capped at 4% of the loan amount. Beyond 4% concessions, VA flags the file. In Florida, seller concessions are negotiable line by line in the purchase contract. Subject to VA guidelines.
Where this can move.
Title and escrow fees, Florida doc stamps, the funding fee, prepaids, escrow setup, and lender fees within VA's allowable list. Non-allowable fees shift to seller or lender.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.