What are seller concessions and can the seller pay my closing costs?

Seller concessions are when the seller agrees to contribute money toward your closing costs, prepaid expenses like property taxes and insurance, or sometimes a rate buydown. In Arizona, you negotiate concessions as part of your purchase offer, and the amount is limited by your loan type. Conventional loans typically allow up to three to six percent of the purchase price depending on your down payment, FHA allows up to six percent, and VA allows up to four percent for certain costs. Sellers are more likely to offer concessions in a slower market or if the home has been listed for a while. The concession amount is credited to you at closing and reduces the cash you need to bring. Jon can help you structure your offer and negotiate concessions based on the property and current market conditions.