Jimmy Vercellino is one of the nation’s top VA Home Loan mortgage originators. A Marine veteran, he and his team work hard to help veterans take advantage of their VA loan benefit and become homeowners. From start to finish, they guide their clients through the process and make it as smooth and stress-free as possible. Visit the site at https://www.valoansforvets.com VA Loans for Vets NMLS#184169 5050 North 40th Street, Ste 260 Phoenix, AZ 85018 (602) 908-5849

1. WHAT ARE SELLER
CONCESSIONS
WITH A VA LOAN?

3. Buying a home can be a complicated transaction.
What initially appears as a simple transaction may get
somewhat complicated when you factor in closing
costs, loan fees, and whatnot.

4. Suddenly it appears the asking price isn’t what you
originally thought. Seller concessions can be helpful in
situations such as this.

5. Learn about seller concessions can help you when
buying a home with a VA loan.

6. WHAT ARE SELLER
CONCESSIONS?

7. Seller concessions are
contributions the
seller agrees to make
at the closing of a
mortgage loan.

8. Buyers often don’t
realize how loan fees
and closing costs can
add up and change the
amount of the loan.

9. In some situations,
where the closing
costs are high, a buyer
may have to cancel
the loan because of
the final price being
too high.

10. Seller concessions can
help the home buyer
go through with the
loan because the
seller is agreeing to
pay many or all the
additional fees.

11. Depending on the
type of loan, there
may be a cap on the
amount of
concessions the seller
can pay for the buyer.

12. WHAT TYPE OF FEES
ARE INCLUDED IN
SELLER CONCESSIONS?

13. The types of fees that are included
in seller concessions may also vary
by the type of mortgage loan.

14. Keep in mind that there are
various types of mortgage
loans, including:
• VA Loan
• Freddie Mac and
Fannie Mae
• USDA
• FHA
• Conventional
Mortgage Loans

15. Closing costs typically can
include transfer fees, loan
processing fees, title
insurance costs, appraisal
fees and transfer fees,
among others.

16. When dealing withVA loans, the seller
concessions may only go towards the following:
• Paying the buyer’s VA funding fee
• Prepayment of insurance
or taxes on the home
• Paying extra points
above two percent of
the loan

17. • Providing escrow funds to give
buyer a temporary interest rate
buy down
• Paying off some of
borrower’s bills or credit
accounts
• Gifts from the buyer
such as appliances

18. Generally speaking,
seller concessions do
not just include the
typical closing costs
but often go beyond
that amount.

19. While there may be a
maximum percent of
seller concessions a
buyer can ask the
seller to pay, this does
not include the loan-
related closing costs.

20. The concession is like
an extra bonus.

21. VA LOAN SELLER
CONTRIBUTION
MAXIMUM

22. The amount that may
be included in seller
concessions also varies
by loan type. Each
loan type has their
own maximum
amount.

23. For instance, while
USDA loans and FHA
loans set their max at
6%, conventional
loans can go anywhere
from 2% to 9%.

24. Some of it may also be
dictated by individual
state laws as well.

25. In the case of VA
loans, seller
concessions cannot be
higher than 4% of the
loan amount.

26. If the loan amount is
$150,000, the seller
concessions cannot be
more than $$6,000.

27. Keep in mind, though,
that while the seller
may be limited to only
paying $6,000 in
concessions, the seller
may also pay an
additional amount
towards customary
loan costs.

28. This total can add up
to a lot and be a real
savings to the buyer.

29. Here is an example of
how this might work:

30. Say the buyer’s closing costs for things like loan
origination fee, title insurance and appraisal come to
2% of the purchase price.

31. The buyer agrees to pay the VA funding fee, insurance,
taxes and pay off some of the buyer’s old debts. This
amount totals 3% of the sales price.

32. Although the total paid by the seller equals 5%, it’s
allowed because only 2% is actually going towards the
closing costs.

33. Mortgage Originator JimmyVercellino,
specializing in VAloans, helps veterans
use their VAloan benefit to their
greatest advantage.

34. Be a proud homeowner today.
For more details call 480-351-5904 or visit the site
www.valoansforvets.com

35. VALoans forVets
7600 E. Doubletree Ranch Road #200
Scottsdale, AZ85258
Phone: (480) 351-5904
Email: jimmyv@fcbmtg.com