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A conventional primary-residence purchase is $400,000 with a 95% LTV. Under Fannie Mae's interested party contribution limits, what is the most the seller may contribute toward closing costs?
For a principal residence or second home with an LTV or CLTV above 90%, Fannie Mae limits interested party contributions to 3% of the lesser of the sales price or appraised value; the limits are 6% at 75.01%-90% and 9% at 75% or less (Fannie Mae Selling Guide B3-4.1-02). 3% x $400,000 = $12,000. $24,000 applies the 6% tier, $36,000 the 9% tier, and $16,000 borrows VA's 4% seller-concession limit. Source: Fannie Mae Selling Guide B3-4.1-02 (as at 11 Oct 2026).
Using the 6% FHA concession limit on a high-LTV conventional loan.
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