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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