What concessions can pay for
Concessions go toward the buyer's costs at closing, such as:
- Loan fees, appraisal, and title & escrow fees
- Prepaid property taxes, homeowners insurance, and interest
- Buying down the interest rate (temporary or permanent buydowns)
- HOA transfer fees and some inspection costs
They generally can't go toward the down payment, and the credit can't be more than the buyer's actual closing costs.
Why buyers love them
Closing costs often run 2–5% of the price. Concessions let buyers — especially first-time buyers — keep more cash in the bank for moving, furniture, or reserves, and a rate buydown can lower the monthly payment.
Why sellers offer them
A credit can attract more buyers, help a home sell faster, and is often a smarter move than a price cut — sometimes a credit saves the buyer more per month than a matching price reduction would. Concessions are also a common way to resolve repair requests after inspections.
Limits by loan type
| Loan | Maximum seller concession |
|---|---|
| Conventional, less than 10% down | 3% of price |
| Conventional, 10–25% down | 6% |
| Conventional, more than 25% down | 9% |
| Conventional, investment property | 2% |
| FHA | 6% |
| VA | 4% (normal closing costs may be paid on top) |
| USDA | 6% |
Limits are set by loan programs and can change — always confirm with your lender.
How to ask for them
Concessions are written into the purchase offer as a dollar amount or percentage. Sometimes buyers raise the offer price slightly to cover the credit — but the home still has to appraise at that price. I'll help you find the right balance for today's Roseville market.
This page is general information, not legal, tax, or lending advice. Please talk with an attorney, CPA, or lender about your specific situation — I'm happy to refer trusted local pros.