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Seller Concession Limit Calculator

Each loan type sets a cap on the total credit a seller can contribute at close. Conventional: 3-9% by LTV. FHA: 6%. VA: 4% non-allowable + unlimited closing. Investment: 2%. This calculator checks your concession ask against the cap.

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$

Allowed concession

$12,000

Maximum concession

$25,500

Overage (convert to price reduction)

$0

Cap %

6.00%

How the math works

$425K conventional LTV 75-90% has 6% cap = $25,500. $12K request is fine. If request were $30K, you'd cap at $25,500 and convert $4,500 to price reduction.

Always plan concession BEFORE writing the offer. Exceeding cap means last-minute paperwork changes that stall closing. Build to cap max or below.

How to Use

  1. Enter sale price, requested concession, loan type, and LTV.
  2. See allowed credit, overage, and suggested structuring.

Frequently Asked Questions

What counts as 'concession'?

Credits toward closing cost, prepaid items (tax/insurance), points, HOA fees for months at close. NOT concession: separately-funded repairs done by seller (just not a credit). Also NOT: price reduction.

What happens if I exceed cap?

Lender reduces the credit to the cap at close. Remaining credit can convert to a price reduction via amended contract — saves the deal but reduces your effective concession.

Can I use concession for down payment?

No. Concession covers closing cost only. Down payment must come from borrower (or gift/asset). Structuring concession as down payment is loan fraud.

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