Despite the fact that sellers seem to have the upper hand at the moment, many of the deals we are closing right now involve the seller paying for some (or all) of the buyer’s closing costs.
With that in mind, here are the limits for seller-paid closing costs for various types of loans.
Conventional Loans
Primary residence or second home with less than 10% down = 3% of the purchase price
Primary residence or second home with between 10% and 24.99% down = 6% of the purchase price
Primary residence or second home with 25% or more down = 9% of the purchase price
Investment property = 2% of the purchase price
FHA Loans
Primary residence only (down payment does not matter) = 6% of the purchase price
VA Loans
Primary residence only (down payment does not matter) = no limit
(This article if courtesy of the Mortgage Experts)