Funds the seller agrees to pay toward the buyer’s closing costs. Limits vary by loan type: FHA (6%), VA (4%), conventional (3-9% depending on LTV), USDA (6%). In Florida, seller concessions are negotiated in the purchase contract and can significantly reduce the buyer’s out-of-pocket costs at closing.
Definition reviewed by Renzo Johnson, Licensed MLO, NMLS #PENDING. Last updated February 2026.