HomeGlossarySeller Concession
Mortgage Glossary

Seller Concession

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A seller concession is money the seller credits toward the buyer's closing costs as part of the purchase negotiation.

What Seller Concession means

Limits vary: FHA allows up to 6%, conventional 3%–6% depending on down payment, and VA up to 4%. Concessions reduce the buyer's cash without changing the price.

Florida example

A Florida buyer negotiates a 3% seller concession on a $350,000 home, applying $10,500 to closing costs. It's a common way to get into a home with less cash upfront in a balanced market.

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Related Mortgage Terms

ServicerSettlement StatementShort Sale
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