Max Seller Contributions On Conventional Loans…

Good Morning!

On Conventional loans, the maximum amount that an interested party (such as the seller) can contribute to the buyers closing costs and prepaids can vary depending on the loan to value ratio of the loan.

Here is the breakdown on how much the seller can contribute…

• 2% of the lesser of the property’s sales price or appraised value for a mortgage secured by an

investment property.

• 3% of the lesser of the property’s sales price or appraised value for a mortgage secured by a

principal residence or second home, if the LTV ratio, or if applicable, the CLTV, is greater than

90%.

• 6% of the lesser of the property’s sales price or appraised value for a mortgage secured by a

principal residence or second home, if the LTV ratio, or if applicable, the CLTV ratio, is in the

range from 76% to 90%.

• 9% of the lesser of the property’s sales price or appraised value for a mortgage secured by a

principal residence or second home, if the LTV ratio, or if applicable, the CLTV ratio, is ≤ 75%.