Seller Concessions: What 1, 2, and 3% Means for Buyers | Matt Ledoux
Turn seller credit into a lower payment
Set your scenario and the seller credit you want to ask for. See what it buys at today’s pricing, then compare buydown options.
Your scenario
What the credit buys
| Rate / APR | Points | Points cost | P&I |
|---|
Tap a rate to use it below. Each point costs 1% of the loan amount. “Covered” means the seller credit can pay those points on its own.
Buydown option
Your numbers
Two ways to ask for it
| Offer at price | Offer higher, same net | |
|---|---|---|
| Purchase price | ||
| Concession | ||
| Seller’s net after concession |
The right column raises the price by the concession so the seller nets about the same. Sellers say yes to that more often. The home has to appraise at the higher price, and your down payment and loan amount go up with it.
Program caps
| Loan type | Max seller concession |
|---|---|
| Conventional, under 10% down | 3% |
| Conventional, 10% to 25% down | 6% |
| Conventional, over 25% down | 9% |
| FHA | 6% |
| VA | 4%, plus closing costs |
| USDA | 6% |
| Jumbo | Set by the lender |
These are program maximums. Your lender confirms what applies to your file. Anything above the cap is lost, not credited.
Side by side
| No buydown | 1-0 | 2-1 |
|---|
The buydown credit funds an escrow account at closing. It is not added to your loan amount, and your note rate never changes. If you sell or refinance early, unused escrow funds are typically applied to your loan balance.
Want to talk through these numbers?
Contact Matt Ledoux. Text or email (480) 540-0801 and matt@forward.loans.
Forward Loans (Forward Holdings, LLC), NMLS #2006640, MB-1012025
11201 N Tatum Blvd, Ste 300, Phoenix, AZ 85028 | (602) 730-2270 | info@forward.loans
All figures are estimates for discussion only. This is not a loan offer, rate quote, or commitment to lend. Rates and APRs are sample pricing from the lenders in our marketplace for the scenario entered: a 30-year fixed purchase of a single family primary home, the loan amount shown, your selected credit range and ZIP, and a 30-day lock. Points and APR include the discount points shown and estimated lender fees. Payments shown are principal and interest only and do not include taxes, insurance, or HOA dues; mortgage insurance is noted where it applies. Pricing changes without notice. Any eligibility is based on information provided and subject to full underwriting. Seller concession limits and temporary buydown availability depend on program guidelines. Forward Loans is licensed as a mortgage broker and non-delegated correspondent lender in AZ, CA, CO, TX, FL, WA, OR, and AL. Equal Housing Opportunity.