💰 How Much Can a Seller Pay Toward Your Closing Costs?

Andrew Georgitsis
Jul 23
2 min read

If you're buying a home and thinking of asking the seller to help cover your closing costs — great idea. But there’s a limit to how much they can actually contribute.

Let’s break down what’s allowed based on the type of loan you're using: FHA, VA, or Conventional.

🟢 First — What Are Seller Concessions?

Seller concessions are when the seller agrees to pay for part (or all) of your closing costs — things like:

Loan origination fees
Title insurance
Appraisal fees
Property taxes or insurance escrows
Discount points (to lower your rate)

💡 These concessions can help reduce the cash you need to close — which is a big win for many buyers, especially first-timers.

📊 How Much Can the Seller Contribute?

Loan Type	Maximum Seller Contribution
FHA	Up to 6% of the home’s sale price
VA	Up to 4%, plus customary closing costs
Conventional	Depends on your down payment:
	– 3–9% down: up to 3%
	– 10–25% down: up to 6%
	– 25%+ down: up to 9%

🧠 Important Notes

Seller concessions cannot be used for your down payment, only closing costs and allowable fees.
You must negotiate this as part of your offer — it must be agreed to in writing before closing.
If your total closing costs are less than the max allowed, the leftover amount can’t go in your pocket — it just goes unused.