Scenario
Reduced rate by year
| Year | Rate | Full payment | Borrower paysPays | Monthly buydownBuydown/mo | Annual buydown |
|---|---|---|---|---|---|
| Total cost of buydown | $0 | ||||
| Total cost of buydown: | |||||
Principal and interest only. The buyer qualifies at the full note rate.
How the APR is estimated
All three side by side
| Type | Seller pays | % of price | Year 1 savingsYr 1 /mo | Limit |
|---|
Price drop vs. seller buydown
Cost to seller compares only the price reduction and the seller-paid buydown. It does not include commissions, closing costs, payoffs or other seller expenses and adjustments.
Lender credit
Can be used for
- Lender fees: origination, underwriting, processing
- Appraisal and credit report
- Title search, title insurance, settlement and attorney fees
- Recording fees and transfer taxes
- Prepaid interest, homeowners insurance premium and property tax escrow
Can't be used for
- The down payment
- Cash back to the buyer
- Paying off other debts to qualify
- More than the buyer's actual closing costs
Credit by down payment
| Down | Down $ | Loan amount | Lender credit |
|---|
Based on the purchase price above. The row you entered is highlighted. Qualified buyer and qualified property required.
Seller Concession Realtor Cheat Sheet
Conventional, primary or second home
| Down payment | Maximum seller concession |
|---|---|
| Under 10% | 3% |
| 10% to 25% | 6% |
| Over 25% | 9% |
Conventional, investment property
| Down payment | Maximum seller concession |
|---|---|
| 15% or more | 2% |
FHA, USDA and VA
| Loan type | Conditions | Maximum seller concession |
|---|---|---|
| FHA | 3.5% or more down | 6% |
| USDA | Any down payment | 6% |
| VA | Ordinary closing costs and normal market discount points | No VA percentage cap* |
| VA | Qualifying seller concessions | 4% of VA reasonable value** |
*Limited to actual eligible expenses.
**This calculator uses sales price for an early estimate. The final VA limit uses the reasonable value on the VA Notice of Value.
For conventional, FHA and USDA, limits are a percent of the sales price (or appraised value if lower). Always confirm with your loan officer before writing the offer.
Seller concession calculator
An estimate based on the cheat sheet above. Lender and investor guidelines can change, so confirm with your loan officer.
Save
Realtor
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