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Seller Concessions Explained: How to Use Them Wisely
January 5, 2026Seller Concessions Explained
Seller concessions are credits the seller provides to help cover your closing costs or other expenses.
Maximum Allowed Concessions
| Loan Type | Max Concession |
|---|---|
| Conventional (< 10% down) | 3% |
| Conventional (10-25% down) | 6% |
| FHA | 6% |
| VA | 4% |
| USDA | 6% |
Ways to Use Concessions
1. Pay Closing Costs
Reduce your out-of-pocket expenses at closing.
2. Fund a Temporary Buydown
Use concessions to pay for a 2-1 buydown.
3. Buy Down the Rate Permanently
Pay for discount points to reduce your rate.
Which Is Best?
Use our Seller Concession Buydown Calculator to compare options.
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