Seller Concessions Arizona

Frequently asked questions

What is a seller concession or IPC?

A seller concession (interested-party contribution) is money the seller credits toward allowable buyer closing costs, points, or certain prepaid items. It does not replace the buyer’s required minimum down payment on FHA.

How much can a seller credit on conventional, FHA, VA, or USDA?

Common published ceilings: conventional primary/second home 3%, 6%, or 9% by LTV; conventional investment 2%; FHA 6% of sales price; VA 4% concessions plus customary closing costs; USDA 6% of sales price. Lender overlays can be tighter.

Do seller credits lower the purchase price?

Usually no. They cover allowable closing costs within program caps. Over-crediting can force a price change or be rejected. Run the number here, then confirm the contract credit with Sal before you rely on it.

Is this calculator a commitment the seller will pay that amount?

No. It estimates program ceilings from Fannie Mae, HUD, VA, and USDA guidance. Title custom, MI, and wholesale overlays may reduce what is allowed. Educational only — not a commitment to lend.

Educational only. Not a credit decision or a commitment to lend. NMLS 1984347.