: Including a one-year home warranty or leaving behind major appliances. Maximum Concession Limits by Loan Type
Sellers can agree to cover a wide variety of costs traditionally paid by the buyer. Common examples include: what are concessions when buying a home
: Offering a credit to cover specific repairs found during an inspection, such as an aging roof or water heater. : Including a one-year home warranty or leaving
: Paying for the buyer's initial property taxes, homeowners insurance premiums, or HOA dues. : Paying for the buyer's initial property taxes,
To prevent artificial inflation of home prices, lenders and government agencies like Fannie Mae (1.4.2) and the Department of Housing and Urban Development (1.2.7) cap how much a seller can contribute. These limits are typically a percentage of the purchase price or appraised value, whichever is lower. What Are Seller Concessions?
Rather than a direct price reduction, these concessions act as a credit at closing, reducing the "cash to close" a buyer needs to bring to the table. This guide explores how they work, what they cover, and the limits imposed by different loan types. Common Examples of Seller Concessions