How much a seller can contribute and how little you can put down, for every major loan type, on one page. Bookmark it, print it or send it to your clients.
3% First-time buyers · 5% otherwise · 10% second homes
3% · 6% · 9% Under 10% down: 3% 10–25% down: 6% Over 25% down: 9%
Concessions are a percentage of the lower of price or appraised value.
FHA
3.5% 580+ credit score
6%
Flexible on credit and debt-to-income. Gift funds allowed for the down payment.
VA
0%
4% + closing costs
Seller can pay normal closing costs and up to 2 discount points outside the 4% concession limit. The 4% can cover things like the funding fee, prepaids or paying off buyer debts.
USDA
0%
6%
Eligible rural and suburban areas. Household income limits vary by county.
Investment property Conventional
15% 1 unit · 25% for 2–4 units
2%
Need more flexibility? DSCR loans often allow higher concessions. Ask me.
DSCR / Non-QM
From 15–20%
Varies by lender
Commonly 3–6%. I’ll match the lender to the deal.
2026 loan limits
Conventional (1 unit)$832,750
High-cost areas (e.g., Orange County)$1,249,125
FHA (floor, 1 unit)$541,287
Conventional 4-unit$1,601,750
VA (full entitlement)No limit
Limits vary by county and state. USDA has no set loan limit. Eligibility is based on household income, family size and county.
What can concessions pay for?
Third-party closing costs, prepaid items (property taxes, homeowner’s insurance, prepaid interest) and discount points to buy down the rate. They can’t be used toward the down payment.
They can also cover lender junk fees. I don’t charge those.
Thomas Von Der Ahe · NMLS #2017782 · Edge Home Finance Corporation · NMLS #891464. For education only and intended primarily for real estate professionals. Guidelines summarized from Fannie Mae, Freddie Mac, HUD, VA and USDA and can change. Individual lenders may be more restrictive. This is not an offer to lend. Qualifications apply.
Minimum down3.5%Max seller concessions6%580+ credit score. Gift funds allowed.
VA
Minimum down0%Max seller concessions4%Plus normal closing costs and up to 2 discount points outside the 4%.
USDA
Minimum down0%Max seller concessions6%Eligible areas. Income limits by county.
Investment
Minimum down15%Max seller concessions2%Conventional, 1 unit (25% for 2–4 units). DSCR often allows more.
2026 loan limits*
Conventional (1 unit)$832,750
High-cost areas (e.g., Orange County)$1,249,125
FHA floor (1 unit)$541,287
Conventional 4-unit$1,601,750
VA (full entitlement)No limit
USDAIncome-based
What concessions can pay for
Third-party closing costs✓
Prepaids: taxes, insurance, interest✓
Discount points to buy down the rate✓
Lender junk fees (I don’t charge them)✓
Down payment✕
Concessions are a percentage of the lower of the price or appraised value. Concessions above actual costs can’t be used.
Thomas Von Der Ahe
Mortgage Broker & Team Lead · NMLS #2017782 (818) 523-8187 · Thomas.VonDerAhe@EdgeHomeFinance.com Edge Home Finance Corporation · NMLS #891464 vdamortgage.com · Instagram & TikTok @TX_mortgageguy
Questions on a deal? Call or text me anytime.
*Loan limits vary by county and state. USDA eligibility is based on household income, family size and county. VA: closing costs and up to 2 discount points are not counted in the 4% limit. For education only and intended primarily for real estate professionals. Guidelines summarized from Fannie Mae, Freddie Mac, HUD, VA and USDA. Individual lenders may be more restrictive.
Thomas Von Der Ahe, NMLS #2017782, licensed mortgage loan originator with Edge Home Finance Corporation, NMLS #891464, 5860 Baker Rd. Minnetonka, MN 55345 · Office (763) 219-8484. Personally licensed in CA, FL, GA, IN, ME, MN, OK, TX, VA, WA. VDA Mortgage Team is a team within Edge Home Finance. This is not an offer to lend or a commitment to lend. All loans are subject to credit approval, underwriting guidelines and property eligibility; not all applicants will qualify. Programs, rates and terms are subject to change without notice. Equal Housing Opportunity.
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