VA Seller Concessions (4% Rule)
Understanding seller concessions (4% rule) up front saves surprises in underwriting. The 2026 specifics are below.
The rule for 2026
On a VA loan the seller can pay 100% of your normal closing costs, plus 'concessions' of up to 4% of the sale price toward prepaids, the funding fee, or paying down debt — generous compared with other loan types.
The VA sets the baseline, but approved lenders can add stricter "overlays." Meet the VA standard first, then confirm whether your lender layers anything on top.
Documentation you'll need
- Certificate of Eligibility (COE)
- Pay stubs or LES (active duty) and two years of W-2s/returns
- Two months of bank statements
- Explanation letters for any credit events
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Frequently Asked Questions
- VA Seller Concessions (4% Rule) — what's the bottom line for 2026?
- On a VA loan the seller can pay 100% of your normal closing costs, plus 'concessions' of up to 4% of the sale price toward prepaids, the funding fee, or paying down debt — generous compared with other loan types.
- Does this affect my $0 down or PMI?
- No — the VA benefit's zero down payment and no monthly mortgage insurance apply throughout.