Kentucky VA Mortgage Sales Concessions – How Well Do You Understand This Guideline?

Kentucky VA Mortgage Sales Concessions – How Well Do You Understand This Guideline?


Kentucky VA Sales Concessions – How Well Do You Understand This Guideline?

Knowing these tips can help you save a loan!

VA limits Sales Concessions to 4%, but there is more to it than that!

What is a Sales Concession that is applied to the 4% limit?

• Buyer’s funding fee

• Prepaid taxes and insurance

• Gifts such as a television or microwave

• Permanent interest rate buy-down points

• Temporary buy-down funds

• Payoff of Credit Balances or Judgments [Yes, you read that correctly]!

HOWEVER……….

Not included in this limit are the following:

•Amounts paid on behalf of the Veteran by the lender or real estate agent.

•Or amounts paid by the seller towards the closing costs.

These amounts can be paid in addition to the Seller Concessions.

Example:

$200,000 loan amount x 4% = $8000 maximum seller concession.

The seller pays $4000 in closing costs [NOT included as part of the seller concession].

The lender pays $1500 in prepaid items [NOT included as part of the seller concession].

The Seller pays off a judgment for the borrower of $5500 [YES, this IS included as part of the seller concession].

The Agent pays $400 for the home inspection [NOT included as part of the seller concession].

So, the Veteran received $11,400 from a combination of the seller, lender, and Agent.

The seller contributed $9500, but only $5500 is considered part of the 4% seller concession limit. The other $4000 is closing costs, which are not included in the seller concession limit.

Therefore, the total seller concession was $5500, which is less than the maximum seller concession of $8000.

The key to VA sales concessions is understanding what IS and IS NOT included in the sales concession limit. Mastering this guideline will help you save a lot of loans!

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Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans

Thank you for visiting. I hope you find this website both informative and empowering as you explore your mortgage options. My goal is to help you feel confident in selecting the right home loan for your unique situation. I proudly serve all 120 counties in Kentucky, offering a full range of mortgage loan programs, including: FHA Loans VA Loans USDA Rural Housing Loans Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I’ve had the privilege of helping more than 1,300 Kentucky families achieve their homeownership goals. Whether you're a first-time homebuyer or seeking a second opinion, I’m here to offer honest, no-pressure advice—always free of charge. I am dedicated to: Attending as many closings as possible Providing responsive, personalized service Ensuring quick, efficient, and accurate loan processing Making myself accessible every step of the way I've been consistently recognized as a top mortgage loan officer in Kentucky for VA, FHA, USDA, and KHC programs. I take pride in being thorough, transparent, and attentive with each and every client. Please take a moment to read my reviews below. If you have questions or need guidance, feel free to call or text me directly. Call/text at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at kentuckyloan@gmail.com with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer, we offer Kentucky Housing or KHC loans with down payment assistance. This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. NMLS# 57916 http://www.nmlsconsumeraccess.org/ Joel Lobb Senior Loan Officer/p> call/text phone: (502) 905-3708 kentuckyloan@gmail.com Company ID #1738461 EQUAL HOUSING LENDER http://www.mylouisvillekentuckymortgage.com/

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