Call us (888) 647-9902
Help center

What are seller concessions on a mortgage?

Short answerSeller concessions are closing-cost credits the seller agrees to pay at closing, negotiated into your purchase contract. Loan programs cap them, typically as a percentage of the price that shrinks as your down payment gets smaller. They can cover title fees, prepaid taxes, and even discount points, but the property still must appraise for the full price.
Reviewed by Juan Fernando Romero, NMLS 2557318Updated

The details

Concession limits are commonly around 3 to 9% depending on the loan type and down payment, so confirm the cap for your program.

In competitive markets, asking for large concessions can weaken your offer, so weigh the trade-off with your agent.

Related loan programs

More answers

Call usGet started