{
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  "name": "How do you calculate seller concessions?",
  "description": "Concession = the agreed credit, capped by loan type: 3% of price (conventional with <10% down), 6% (conventional 10–25% down, and FHA), 9% (conventional 25%+ down), 4% (VA). On a $350,000 FHA purchase, the cap is $21,000 — far more than typical closing costs.",
  "url": "https://www.revenuelab.fyi/answers/how-to-calculate-seller-concessions",
  "dateModified": "2026-10-01",
  "creator": {
    "@type": "Organization",
    "name": "RevenueLab",
    "url": "https://www.revenuelab.fyi"
  },
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "keywords": [
    "Closing Costs Calculator",
    "Rent vs Buy Net Worth Calculator"
  ],
  "distribution": {
    "@type": "DataDownload",
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  "json": {
    "type": "answer",
    "question": "How do you calculate seller concessions?",
    "shortAnswer": "Concession = the agreed credit, capped by loan type: 3% of price (conventional with <10% down), 6% (conventional 10–25% down, and FHA), 9% (conventional 25%+ down), 4% (VA). On a $350,000 FHA purchase, the cap is $21,000 — far more than typical closing costs.",
    "tableTitle": "Concession caps by loan type (share of price)",
    "columns": [
      "Loan type",
      "Cap",
      "Cap on $350,000"
    ],
    "rows": [
      {
        "label": "Conventional, <10% down",
        "value": "3%",
        "note": "$10,500"
      },
      {
        "label": "Conventional, 10–24.9% down",
        "value": "6%",
        "note": "$21,000"
      },
      {
        "label": "Conventional, ≥25% down",
        "value": "9%",
        "note": "$31,500"
      },
      {
        "label": "FHA",
        "value": "6%",
        "note": "$21,000"
      },
      {
        "label": "VA (concessions; costs extra)",
        "value": "4%",
        "note": "$14,000"
      }
    ],
    "context": "Concessions can only cover actual closing costs and prepaids — you can't pocket the difference, so don't negotiate a credit larger than your real costs. Two cautions: the home must still appraise at the full contract price (a $355,000 price with a $5,000 credit must appraise at $355,000), and in hot markets a concession request weakens your offer versus a clean one. A rate buydown is a legitimate use: a 2-1 buydown on a $350,000 loan costs about $8,000 and cuts the payment ~$450/month in year one.",
    "methodology": "Caps per Fannie Mae selling guide, HUD, and VA handbook (2025–2026). Buydown cost example at ~6.75% note rate.",
    "dateModified": "2026-10-01",
    "relatedCalculators": [
      {
        "label": "Closing Costs Calculator",
        "to": "/closing-costs-calculator"
      },
      {
        "label": "Rent vs Buy Net Worth Calculator",
        "to": "/rent-vs-buy-net-worth-calculator"
      }
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    "relatedReading": [
      {
        "label": "How to negotiate closing costs",
        "to": "/answers/how-to-negotiate-closing-costs"
      }
    ]
  }
}