Finance
What is the maximum amount of 'seller concessions' typically allowed in a conventional loan transaction in Vermont?
ANo limit on seller concessions
B3–9% of the purchase price, depending on the LTV ratio, per Fannie Mae/Freddie Mac guidelines✓ Correct
C1% of the purchase price
DExactly $5,000 for all conventional loans
Explanation
Conventional loan guidelines (Fannie Mae/Freddie Mac) limit seller concessions based on LTV: up to 3% for LTV above 90%, up to 6% for LTV between 75–90%, and up to 9% for LTV at or below 75%. Seller concessions above these limits can result in a price reduction by the appraiser.
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