Mortgage Navigator • USDA Property & Special Transactions

USDA Seller Concessions

USDA's current rule allows significant seller help—but the contribution has to be used for an eligible loan purpose.

Current limit: 6% of sales price

USDA's current Chapter 6 and 2026 origination FAQ state that seller or other interested-party contributions are limited to 6% of the sales price.

What can they pay?

Contributions can be used for eligible closing costs, prepaids and other eligible loan purposes. USDA's current FAQ confirms seller contributions may pay all or part of the upfront guarantee fee.

What is not included in the 6% limit?

USDA's current FAQ says seller funds used to pay the buyer's real-estate commission fees are not included in the interested-party contribution limit. Chapter 6 also excludes seller repair funds from the concession cap.

Not allowed: current USDA FAQ says interested-party funds cannot be used to pay off the applicant's debt to qualify.

Official USDA baseline

USDA Chapter 6 — Loan Purposes · USDA Loan Origination FAQ

Educational summary. Current handbook, GUS findings and approved-lender requirements control the actual transaction.