Stewardship Capital
Every loan program caps what a seller is allowed to contribute. Check the limit before you write the offer. For example, a conventional primary-residence buyer putting 5% down on a $625,000 home can ask the seller for up to 3%, or $18,750.
Occupancy only changes the limit on conventional loans.
Maximum seller contribution
$0
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Seller limits run from 2% to 9% of the purchase price: conventional 3%, 6% or 9% by down payment (2% on investment property), FHA 6%, VA 4% and USDA 6%. The cap is a share of the purchase price. On conventional loans it moves with the down payment, because the limit is set by loan-to-value.
| Down payment | Max concession |
|---|---|
| Less than 10% down | 3% |
| 10% to 24.99% down | 6% |
| 25% or more down | 9% |
| Any down payment | 2% |
| FHA | 6% |
| VA | 4% |
| USDA | 6% |
On VA loans the 4% cap applies to seller concessions such as paying the funding fee or prepaying taxes and insurance. A seller may also pay the buyer's customary closing costs on top of that.
Closing costs, prepaid taxes and insurance, discount points, and funding or guarantee fees. It can also fund a temporary rate buydown, which in a slow market often does more for a buyer's payment than the same money taken off the price.
A seller contribution cannot be cash back to the buyer, and it cannot be used for the down payment.
An unlimited credit would let a price be inflated and the difference handed back to the buyer, which would make the appraisal meaningless. Capping the contribution keeps the recorded price close to the real one.
On a conventional loan for a primary residence or second home, the limit depends on the down payment. With less than 10% down the seller can contribute up to 3% of the purchase price. With 10% to 24.99% down the limit is 6%. With 25% or more down the limit is 9%.
On a conventional loan for an investment property the limit is 2% of the purchase price, whatever the down payment.
FHA allows up to 6% of the purchase price, VA allows up to 4% and USDA allows up to 6%. On VA loans the 4% cap applies to seller concessions such as paying the funding fee or prepaying taxes and insurance. A seller may also pay the buyer's customary closing costs on top of that.
Closing costs, prepaid taxes and insurance, discount points, and funding or guarantee fees. It can also fund a temporary rate buydown, which in a slow market often does more for a buyer's payment than the same money taken off the price. A seller contribution cannot be cash back to the buyer, and it cannot be used for the down payment.
An unlimited credit would let a price be inflated and the difference handed back to the buyer, which would make the appraisal meaningless. Capping the contribution keeps the recorded price close to the real one.
Source and year: general seller-contribution (interested party contribution) limits for conventional loans (Fannie Mae and Freddie Mac), FHA, VA and USDA, as of 2026. Last reviewed November 2026.
Check before you write. These are the general agency limits. Individual investors, down payment assistance programs and some loan products apply tighter rules, so confirm the limit on the specific file before relying on it. This is not a quote, a commitment to lend or an offer of credit. Stephen Chakerian, NMLS #2193331 | Stewardship Capital, a team of Barrett Financial Group, L.L.C., NMLS #181106 | Equal Housing Opportunity.
