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.
Plain-English explanation
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.
What can change the answer?
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.
Related
Want the real answer for your VA file?
VA guidelines are the rule. Your COE, entitlement, residual income, property, and Florida costs are what decide the actual answer.
More VA questions on Closing Costs
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.