Quick Reference: Limits on seller paid closing costs for buyers

As a buyer or realtor, before agreeing to a sales price on the purchase contract, it is very important to know if you need or want seller paid costs, how much is needed or most beneficial, and how much is allowed to be paid by the seller.

The limits for seller paid closing or settlement costs for different types of mortgage are as follows:

FHA = 6% (sometimes lower with certain investors on lower credit scores)

USDA  = 6%

VA  = 4% (Veteran cannot pay for pest inspection)

Conventional:  Fannie Mae or Freddie Mac loans

• Primary: 3% over 90%, 6% from 75.01% – 90%, 9% when 75% or less
• Secondary: 6% from 75.01% – 90%, 9% when 75% or less
• Investment: 2% for any LTV

FHA 203k = 6%

Contact our team up-front to best strategize on how much seller paid costs to include in the purchase price.