Mortgage Navigator • VA Underwriting

VA Seller Concessions & Fees

One of the most common VA mistakes is treating every seller-paid cost as the same thing.

Concession vs. normal closing cost

VA distinguishes seller concessions from ordinary seller-paid costs that are customary in a transaction. The classification matters when applying VA's concession limitation.

Look at what the seller is actually paying

Items that provide an additional benefit to the Veteran can be treated differently from normal closing costs. Always classify the item under the current VA rule before applying a percentage cap.

Do not use a blanket slogan: “VA sellers can only pay 4%” can be misleading when it fails to distinguish concessions from allowable ordinary closing costs.

VA rule or lender overlay?

If a lender says this scenario cannot be done, identify the exact VA rule, AUS/underwriting result, or lender overlay before treating the answer as universal. See the VA decline framework →

Official VA baseline

VA Pamphlet 26-7 — Chapter 4: Credit Underwriting · VA Home Loans

Educational summary. Lenders may impose overlays beyond VA's baseline.