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Seller Credit Limits When Borrowing

  • Sep 5, 2024
  • 1 min read

With the recent changes (8/2024) involving buyer agent compensation, we are starting to see more offers with seller credits these days.But, did you know there is actually a cap on how much buyers can receive from the seller regarding these credits? It changes loan type to loan type and also by how much they're putting down. 


It can get super confusing, so New American Funding made a chart to use for reference! 


This provides a quick overview of the allowable seller concessions for different mortgage loan types. Seller concessions are a great way to reduce your out-of-pocket expenses for things like closing costs, prepaid items, and discount points.  

 

Joe also has some strategies for buyer agent commission should the seller not be offering cooperative compensation that he would be happy to talk to you about.

 

information provided by

Joe Demarco

New American Funding

615-735-7431


 

- USDA Loans (Primary):

  - Up to 6%

 

I’ve attached a visual "Seller Concession Cheat Sheet" that provides more details on this topic

 
 
 

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