VA Seller Concession Calculator

Merchants Home Lending provides this calculator to help VA borrowers estimate potential seller concessions and better understand their home buying costs.

How the VA Seller Concession Calculator Works

The VA Seller Concession Calculator estimates the maximum seller concessions that may be available based on the home's purchase price and your loan details.

Enter the following information:

• Home purchase price
• VA loan amount
• Estimated closing costs
• Funding fee (if applicable)
• Seller contribution amount
• Other eligible buyer expenses

The calculator estimates the total seller concessions and shows how they may reduce your cash needed at closing.

What Seller Concessions May Include

Closing Costs

Sellers may agree to pay some or all of the buyer's allowable closing costs, reducing upfront expenses.

Prepaid Expenses

Seller concessions may help cover prepaid property taxes, homeowners insurance, or other eligible prepaid items.

VA Funding Fee

In some situations, the seller may agree to pay the VA funding fee if permitted by the purchase agreement.

Other Allowable Buyer Costs

Certain additional expenses may qualify as seller concessions under VA loan guidelines, subject to program requirements and lender review.

VA Seller Concession Example

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This example shows how seller concessions can reduce the amount a buyer needs to bring to closing.

Purchase Price Comparison

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The maximum allowable seller concessions generally increase as the purchase price increases.

Buyer Cost Comparison

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Seller concessions can significantly reduce the buyer's upfront expenses at closing.

Why Use a VA Seller Concession Calculator?

A VA Seller Concession Calculator helps borrowers:

• Estimate potential seller contributions
• Understand cash needed at closing
• Compare different purchase scenarios
• Plan home buying expenses
• Prepare for negotiations with sellers

Using the calculator before making an offer helps buyers understand how seller concessions may affect their overall home purchase costs.

Factors That Affect Seller Concessions

Several factors influence the amount of seller concessions that may be available, including:

• Home purchase price
• Purchase agreement terms
• Local market conditions
• VA loan guidelines
• Lender requirements
• Negotiation between buyer and seller

Not every seller will agree to provide concessions, and the final amount depends on the negotiated contract.

Frequently Asked Questions

What are VA seller concessions?
VA seller concessions are certain costs that a home seller agrees to pay on behalf of the buyer, reducing the buyer's out of pocket expenses at closing.

Is there a limit on VA seller concessions?
Yes. Under VA guidelines, seller concessions are generally limited to up to 4% of the home's reasonable value or purchase price, depending on the circumstances. Standard closing costs that sellers may pay are treated separately from this concession limit.

Can seller concessions cover all closing costs?
They may cover some or all eligible closing costs, depending on the negotiated agreement and applicable VA guidelines.

Do seller concessions affect my loan amount?
Seller concessions typically reduce your upfront expenses but do not usually reduce the principal amount of your VA loan.

Are the calculator results guaranteed?
No. The calculator provides estimates based on the information entered. Actual seller concessions depend on the purchase contract, lender review, appraisal results, and current VA requirements.

Seller concessions can make purchasing a home more affordable by reducing the cash required at closing. Merchants Home Lending provides this VA Seller Concession Calculator to help eligible borrowers estimate potential savings, compare financing scenarios, and make informed decisions throughout the home buying process.