How Much Seller Concession Can You Request in Florida?
How Much Seller Concession Can You Request in Florida?
Quick Answer
For a financed Florida purchase, base your seller-concession request on your loan program’s limits and eligible costs – not an assumed statewide cap. A Florida statute or rule establishing a statewide maximum was not verified, and neither were current USDA contribution limits. Fannie Mae, FHA, and VA apply different limits and calculation rules. For Fannie Mae-eligible transactions, financing concessions cannot exceed your closing costs; excess is treated as a sales concession and deducted from the property’s sales price. Before making your offer, ask your lender to confirm the usable credit and ask whether the seller will agree to it. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
How much seller concession should you request in your Florida offer?
For a financed purchase, size your request around your lender’s confirmed program limit and the costs the program allows. Ask the seller whether they will agree to that amount rather than treating a program maximum as an agreed credit.
For Fannie Mae-eligible transactions, the percentage applies to the lower of the sales price or appraised value – not the loan amount. Your financing concession also cannot exceed your closing costs.
Ask your lender to identify the applicable program, property use, calculation base, and eligible costs before you put a concession amount into your offer.
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– tbreens, Zillow Review
Fannie Mae financing-concession limits
The Fannie Mae Selling Guide, Interested Party Contributions, sets these maximum financing concessions for eligible transactions:
| Property use | Applicable ratio | Maximum financing concession |
|---|---|---|
| Principal residence or second home | LTV/CLTV greater than 90% | 3% |
| Principal residence or second home | LTV/CLTV of 75.01% – 90% | 6% |
| Principal residence or second home | LTV/CLTV of 75% or less | 9% |
| Investment property | All CLTV ratios | 2% |
Every percentage in this table uses the lower of the sales price or appraised value. The closing-cost limit also applies: financing concessions must be equal to or less than your total closing costs.
If the credit exceeds your closing costs, Fannie Mae treats the excess as a sales concession and deducts it from the property’s sales price. Ask your lender how that treatment would affect your proposed financing before relying on the full requested credit.
FHA allows contributions toward specified costs
For FHA purchase loans, HUD Handbook 4000.1 allows interested parties – sellers, real estate agents, builders, developers, or other parties with an interest in the transaction – to contribute up to 6% of the sales price toward your origination fees, other closing costs, and discount points.
Contributions above 6%, or above your actual origination fees, closing costs, and discount points, are treated as an inducement to purchase and reduce the loan amount dollar for dollar. Ask your lender which costs in your transaction qualify before requesting the full percentage.
VA’s 4% limit excludes buyer closing costs
For VA-guaranteed loans, the VA Lenders Handbook, Chapter 8, treats seller concessions above 4% of the property’s established reasonable value as excessive and unacceptable.
Mike Renick and Eric Teoh represented my husband and myself for both the sale of an existing property and the purchase of a new property. Their knowledge of Longboat Key and property values was exceptional.. The process of closing on both the sale and purchase was flawless. I have not hesitated to recommended them to others.
– Barbara Diznoff, Google Review
That calculation excludes payment of your closing costs and normal discount points. Do not treat the VA limit as a blanket 4% ceiling on all seller-paid costs; ask your lender to separate amounts counted toward the concession limit from excluded closing costs and normal discount points.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
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Questions Clients Actually Ask
Is a Fannie Mae concession percentage based on my loan amount?
No. For Fannie Mae-eligible financing concessions, the percentage uses the lower of the sales price or appraised value, not your loan amount. The concession also cannot exceed your closing costs.
Do seller-paid buyer closing costs count toward VA’s 4% limit?
No. For VA-guaranteed loans, the VA Lenders Handbook, Chapter 8, excludes payment of buyer closing costs and normal discount points from that calculation. Counted seller concessions above 4% of the property’s established reasonable value are excessive and unacceptable.
What To Do Right Now
Before submitting your offer, ask your lender for a written calculation of your usable seller credit showing the applicable program limit, calculation base, and eligible costs.
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
About the Author
I’m Michael Renick — a Florida West Coast broker with over 15 years guiding families through some of the biggest decisions of their lives. I’ve built my practice on hard work, honesty, and total transparency. No shortcuts, no spin — just straight answers, deep market knowledge, and the dedication my clients deserve from start to close.
Equal Housing Opportunity. This article is general information only, not legal, tax, insurance, or financial advice. Market conditions, insurance requirements, and costs vary by property and transaction; confirm your specific situation with the appropriate licensed professional. Michael Renick, Licensed Florida Real Estate Broker, License #BK3241900, licensed by the Florida Department of Business and Professional Regulation (DBPR). Mangrove Realty Associates Inc — each office is independently owned and operated.
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