Seller Resources/Buyer Financing
Buyer Loan Types
What the buyer’s loan means for your sale.
The buyer’s loan type affects the appraisal, the home’s condition requirements and how much closing-cost help you can give. Here’s what to expect with each.
Loan Types at a Glance
| Loan | What It Means for You |
|---|---|
| Conventional | The most common loan. The appraisal focuses on value, with flexible condition standards. |
| FHA | The appraiser also checks minimum property standards, such as safety hazards, peeling paint or roof issues, which may need repair before closing. |
| VA | For eligible veterans. Minimum property requirements apply, and VA limits some fees the buyer can pay, so sellers often cover them. |
| USDA | For eligible rural areas, with property and condition standards similar to FHA. |
| Jumbo | For loan amounts above conforming limits; often larger down payments and stricter reserves. |
| Cash | No loan or lender appraisal, unless the contract adds one; the buyer provides proof of funds. |
Closing-Cost Help (Seller Concessions)
| Loan | Typical Limit |
|---|---|
| Conventional | 3% to 9% of the price, depending on the down payment (2% for investment properties) |
| FHA | Up to 6% |
| VA | Up to 4%, plus normal closing costs |
| USDA | Up to 6% |
Limits change, and lenders confirm exact amounts.
The Appraisal
If it comes in at value
The loan moves ahead on schedule.
If it comes in low
The buyer may cancel within 5 days, and we can talk through options: a price adjustment, the buyer covering the gap, or a reconsideration of value with comparable sales.
Sample Forms
Blank Arizona REALTORS® samples for reference. We’ll complete the current version together.
Unfamiliar term? Browse the Real Estate Glossary →
Thinking about selling?
Call or text me anytime. I’ll walk you through every step and every document, from listing to closing.
General information only, not lending advice. Program rules vary by lender and change over time.