ALL PHOENIX
METRO & SCOTTSDALE
METRO & SCOTTSDALE
BUYER & SELLER RESOURCE
Seller Concession
CHEAT SHEET
What the seller can pay toward the buyer's closing costs, by loan type.
MAXIMUM LIMITS BY LOAN TYPE
Conventional
Tiered by down payment
3%
Under 10%
Down
Down
6%
10 - 25%
Down
Down
9%
Over 25%
Down
Down
2%
Investment
Property
Property
FHA
All down payments
6%
VA
Concession items only
Closing costs uncapped
Closing costs uncapped
4%
USDA
Based on buyer's loan amount
6%
✓ CAN BE APPLIED TO
- Loan origination & processing fees
- Title insurance & escrow
- Appraisal & inspection fees
- Prepaid taxes & insurance
- Mortgage insurance (MIP / PMI)
- Discount points / rate buydowns
- HOA dues (up to 12 months)
- Home warranty
× CANNOT BE APPLIED TO
- Down payment
- Cash back to buyer
- Principal reduction
- Amounts exceeding actual costs
- Undisclosed contributions
KEY RULE
Concessions are capped at the lesser of the sale price or appraised value and cannot exceed actual closing costs.
QUICK MATH — $500K HOME, FHA 6%
MAX CONCESSION
$30,000
TYPICAL AZ
CLOSING COSTS
CLOSING COSTS
$5K - $12.5K
1 - 2.5% of price
REMAINING FOR
BUYDOWNS / PREPAIDS
BUYDOWNS / PREPAIDS
$17.5K+
