Free scenario calculator
Seller credit or price cut?
Compare the cash needed upfront with the loan and payment differences over time. Explore the original price, a lower price, and an up-to seller credit using the same mortgage assumptions.
No account or upload · Inputs stay in this page · Educational estimates, not loan approval
A smaller loan and less cash upfront do different things. Read the seller credit vs. price cut study for the hypothetical $400,000 example, methods, charts and source data.
One set of assumptions · Three strategies
Set up your comparison
Your scenario · Every field is required. Blank is unknown; enter 0 only where it applies.
Enter amounts using digits and a decimal point, without commas or currency symbols. Dollar inputs accept up to 2 decimal places.
Before either concession. The original loan must be $832,750 or less in this model.
Zero allowed. Must be less than the original price; compared as its own strategy.
Zero allowed. The amount offered may exceed what can be used.
5%–99.99%, up to 2 decimals. The same percentage applies to each price.
0%–15%, up to 4 decimals. Use the note rate, not APR; held constant in all strategies.
Choose a fully amortizing fixed-rate term.
Zero allowed. Enter costs before this seller credit, counted once and not covered by other credits. See the scope below.
Whole years from 0 through the loan term. Zero compares the purchase only.
Which costs and loans fit this comparison?
Use an owner-occupied, one-unit conventional conforming fixed-rate purchase, with one mortgage and an appraisal at least as high as the original price. The 5% minimum down payment and $832,750 original-loan ceiling are limits of this study, not universal lending requirements.
Eligible costs may include lender-confirmed closing costs, prepaids and initial escrow amounts that this seller contribution can cover. Count each amount once. Exclude down payment, reserves, discount points, rate buydowns and amounts covered by another credit. This tool cannot determine whether your entered costs are eligible.
There is no subordinate financing, assistance loan, other interested-party contribution, financed fee or financed mortgage insurance. The same rate, term, eligible dollar costs and down-payment percentage are held constant. Actual lender pricing, fees and mortgage insurance can differ.
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What the comparison includes
Percentage down stays constant
A price cut reduces both the dollar down payment and the starting loan. A usable seller credit covers eligible costs; it does not reduce the price, loan or note rate in this comparison.
Credit availability has two limits
The model applies the lesser of the offered credit, entered eligible costs and the Fannie Mae financing-concession ceiling. It assumes a sufficient appraisal and no other contributions using that allowance. Fannie Mae contribution rules.
A controlled example, not a quote
The same rate, eligible dollar costs, term and comparison period apply to every strategy. The headline rate is hypothetical. This is an original scenario analysis, not surveyed borrowers, market-rate data or lender pricing research.
Confirm the transaction with your lender
Ask which costs are eligible, whether other contributions reduce the allowance, and how the proposed contract should handle an unusable amount. If an excess contribution is actually provided, different underwriting treatment applies.
The 2026 baseline-conforming limit used here is $832,750 for the original loan. Higher-cost-area limits and eligibility for particular loan products are outside this tool. FHFA’s 2026 limits. Down payment, closing costs and actual Cash to Close are different figures; see the CFPB Closing Disclosure explainer.
Rules and study assumptions reviewed October 3, 2026. Educational planning only; not financial, tax or legal advice, a financing offer, or verification that a lender will accept a seller contribution.