Mortgage News

The maximum amount a seller can contribute to the closing costs

February 19th, 2015

People often ask me: 

What's the maximum amount a seller can contribute to the closing costs?

The answer depends on the loan program.

The chart below shows the seller contributions for conventional loans based on the down payment.

Note: The chart only applies for primary and second homes.

Seller contribution

More seller contribution information:

Investment properties

- Seller can contribute 2% regardless of down payment amount. For more information, click 
here

Federal Housing Administration (FHA) loans

Seller can contribute 6% of the sales price or appraised value (whichever is less)

Veteran's Administration (VA) loans 

- Seller contribution cannot exceed 4%. For more information, click 
here

If you have any questions about closing costs and how they might impact your clients, please contact me at 757-490-4726 or srubin@tidewaterhomefunding.com.