What is the maximum seller contribution for an investment property?

In the context of investment properties, the guidelines regarding seller contributions are typically determined by the loan type and the overall structure of the deal. For most conventional loans, the maximum seller contribution allowed for investment properties is commonly set at 2%. This limit is established to prevent sellers from artificially inflating the property's value through excessive contributions, which could expose lenders to additional risk.

Understanding the seller contribution limits is crucial for both mortgage loan officers and borrowers, as it affects how much a seller can help cover closing costs or other expenses associated with the transaction. Even among different loan programs and types, investment properties often have stricter contribution limits compared to primary residences, reflecting the heightened risk involved in financing these properties.

In this case, while 1%, 3%, and 4% may apply to different scenarios or loan types, the correct answer remains that 2% is the maximum seller contribution for investment properties, adhering to the established guidelines for conventional financing.