09/30/2026
Sellers are giving buyers MONEY right now...
And with mortgage rates making every dollar of monthly payment matter, this might be one of the most overlooked parts of buying a home.
In August, seller concessions showed up in 44.7% of U.S. home sales tracked by Redfin.
Nearly HALF.
Why?
More homes are competing for fewer buyers in many markets, which means sellers are often more willing to help get a deal across the finish line.
And that help can be powerful.
A seller concession can potentially help pay for closing costs, prepaid expenses, discount points, or an interest rate buydown depending on the loan program.
Think about that...
Instead of the buyer writing a bigger check at closing to buy down their mortgage rate, part of that cost may be negotiated into the deal and paid by the seller.
Hereโs where it gets interesting.
Most buyers have no idea how much sellers may actually be allowed to contribute.
CONVENTIONAL LOANS
For a primary residence or second home, the financing concession limits generally look like this:
โข Less than 10% down: up to 3%
โข 10% to less than 25% down: up to 6%
โข 25% or more down: up to 9%
โข Investment property: generally up to 2%
FHA LOANS
Up to 6% of the sales price.
That money can potentially cover eligible closing costs, prepaid items, discount points, and permanent or temporary rate buydowns.
USDA LOANS
Up to 6% of the sales price toward eligible costs.
VA LOANS
This one gets misunderstood ALL the time.
VA limits certain seller concessions to 4% of the homeโs reasonable value.
But normal buyer closing costs and discount points are treated differently and do not simply fall under that same 4% cap.
That can give a VA buyer more negotiating flexibility than people realize.
Now put some numbers behind this...
On a $500,000 home:
3% = $15,000
6% = $30,000
9% = $45,000
That does NOT mean every buyer automatically gets that amount or can use every dollar.
The actual credit has to fit the loan guidelines, eligible costs, appraisal, contract terms, and lender requirements.
But hereโs the bigger point...
When rates are higher, negotiating $10,000 toward closing costs or a rate buydown can hit a buyerโs finances very differently than simply negotiating $10,000 off the sales price.
One affects the amount financed.
The other may reduce the CASH needed at closing or potentially reduce the monthly payment.
Thatโs why seller concessions deserve a much bigger seat at the negotiation table right now.
The purchase price is only one number.
The STRUCTURE of the deal can matter just as much. Give me a call to discuss all your Mortgage Options. I am an Okie Lender that can get you pre approved for any Zip code in Oklahoma.
Coletmortgage.com
405-471-1177
NMLS 2011113
