Mortgage Navigator • Conventional • Transaction Funds
Seller concessions
The familiar 3%-6%-9% limits apply to financing concessions—not every dollar a seller ever pays.
Freddie current limits
For primary residences and second homes, Freddie's current maximum financing concessions are 3% above 90% LTV/TLTV, 6% above 75% through 90%, and 9% at 75% or less. Investment properties are capped at 2%.
Fannie framework
Fannie uses the same familiar tiered concept for maximum financing concessions based on occupancy and LTV/CLTV, while distinguishing true financing concessions from sales concessions and certain customary seller-paid items.
Important: seller contributions cannot be used as the borrower's down payment, minimum borrower contribution or required reserves under Fannie's IPC rule.
Mortgage myth: “every seller-paid fee counts against the concession cap” is too broad. The exact fee and whether it is customary or an IPC matters.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Program terms, AUS findings and lender overlays control. DPA program eligibility must also be verified with the program administrator.