“Your Mileage Points May Vary”

Once upon a time, it was (fairly) safe to tell Buyers that the maximum contribution that a Seller could make toward the Buyer’s closing costs was 3%.

No more.

Here’s the current, updated “cheat sheet,” courtesy of Edina Mortgage’s Keith O’Brien:

  • FHA is 6% regardless of down payment.
  • Conventional is 3% if the down payment is less than 10%, 6% if the down payment is 10% or more but less than 25% and finally, 9% if the down payment is 25% or more
  • For jumbo loans, if the down payment is less than 20%, the maximum contribution is 3% and if the down payment is 20% or more, the max is 6%.
  • For VA loans, the seller can pay all non-recurring costs and up to 4% for anything else.
  • If you are purchasing investment property, the maximum amount that can be paid is simply 2%.

Got all that?

As Minnesotans like to say, “Uff-dah!”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.
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