How do I utilize the rest of my seller concessions?

To utilize the remaining balance of your seller concessions, you must direct them toward specific, VA-allowed closing costs and prepaid items that exceed the standard charges, as the total concessions cannot exceed 4% of the loan amount (see VA Lender's Handbook, Chapter 8). Allowable costs that count toward the 4% cap include payment of the VA Funding Fee, discount points to buy down your interest rate, and paying off certain judgments or debts. Critically, you can also apply concessions to "prepaids" like property taxes and homeowner's insurance, which are unlimited under the 4% rule and are a powerful way to use surplus funds. Your actionable next step is to immediately instruct your lender and settlement agent to apply any remaining concession funds to these prepaid items at closing, as you cannot receive cash back; any unused portion is simply forfeited. Ensure your Closing Disclosure reflects this application to maximize your benefit. Remember, this is a common and strategic part of VA loan transactions, so communicate clearly with your loan officer to finalize the application of these funds before your closing date.

*Disclaimer: This information is for educational purposes regarding VA loan guidelines and is not intended as legal, financial, or VA benefits advice. You should consult with your lender, real estate attorney, or a VA-accredited representative for guidance specific to your transaction.*