Seller Contribution Limits (For Interest Rate Buydown or Closing Costs)
Seller Contribution Limits (For Interest Rate Buydown or Closing Costs) Conventional Loans (Primary & Second Homes) Limits are based on the Loan to Value: Down payment less than 10% (LTV > 90%): Up to 3% Down payment between 10% and 25% (LTV 75.01% – 90%): Up to 6% Down payment greater than 25% (LTV ≤ 75%): Up to 9% Investment properties: Capped at 2% regardless of down payment FHA Loans Up to 6% of the home's purchase price or appraised value (whichever is lower). This can cover closing costs, origination fees, discount points, prepaids, and upfront mortgage insurance. VA Loans Standard closing costs can be paid entirely by the seller without counting against a percentage cap. Seller concessions (such as paying off buyer debts, buyer VA funding fees, or rate buydowns) are capped at 4% of the loan amount. Contact me directly for any scenario or pricing questions. Bob McCormick, President Office 800-328-1044 Email McCormickLending@gmail.com www.McCormickLen...