Seller concession are usually either a percentage of the sales price or a flat dollar amount. These dollars can be used to pay a buyer’s closing costs (the cost for the buyer to obtain finacing) and pre-paid items up to the maximum limit allowed by the loan program. They cannot be used to pay any part of the buyers minimum cash investment for down payment. Neither can they be used to pay any items that are construed as sales inducements, such as personal property, paying off a buyer’s debts or pre-payment of any future obligations, such as mortgage payments or HOA fees. Any unused seller concession goes back to the seller so be sure to consult with your loan officer to determine the correct amount of seller concession needed for the buyer.
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