The direct answer
On a VA purchase in Cedar Hills, Utah, the seller can pay all of the buyer's allowable closing costs — lender fees, title and escrow charges, recording fees, and prepaid taxes and insurance — plus additional "seller concessions" of up to 4% of the home's reasonable value for items like the VA funding fee, paying off the buyer's debts, or temporary rate buydowns.
Concessions are always negotiated, never required. The VA only restricts a small set of fees the veteran is not allowed to pay; everything else is a matter of what the buyer asks for and the seller agrees to in the contract.
Executive summary
- Sellers can pay 100% of a VA buyer's normal closing costs — this is separate from the 4% concession cap.
- The 4% concession limit covers extras: the VA funding fee, debt payoff, rate buydowns, and similar items.
- The VA prohibits the veteran from paying certain fees; the lender or seller typically covers those.
- Concessions must fit within the appraised value — the home still has to appraise at the contract price.
- Asking for concessions weakens an offer slightly; ask only for what the numbers genuinely require.
- Every concession must be written into the purchase contract to be enforceable.
What the seller can pay — and the limits
| Category | Examples | Limit |
|---|---|---|
| Normal closing costs | Lender origination, title, escrow, recording, prepaid taxes and insurance | No percentage cap — seller can pay all of them |
| Seller concessions | VA funding fee, paying off buyer debts, temporary rate buydowns, prepaid items beyond the norm | Up to 4% of the home's reasonable (appraised) value |
| VA-restricted fees | Certain fees the veteran may not pay, such as some attorney or escrow-related charges | Must be paid by the lender or seller, not the veteran |
| Never allowed | Cash back to the buyer beyond actual costs, or concessions above the 4% cap | Not permitted on a VA purchase |
What is specific to Cedar Hills
Cedar Hills offers a mix of newer subdivisions and established neighborhoods, and seller openness to concessions varies by how long a home has been listed. VA buyers here often find that homes sitting past the first two weeks come with sellers who are willing to discuss covering closing costs.
In Cedar Hills, watch days on market: a home that has been listed a while is often where a seller-paid closing-cost request lands best, as long as the price still appraises.
Confirm eligibility and documents in the Cedar Hills VA eligibility guide, and see how concession requests fit into a strong Cedar Hills VA offer before you negotiate.
Common misunderstandings about VA seller concessions
The most persistent myth is that the VA forces sellers to pay the buyer's costs — it does not. Concessions are negotiated like any other contract term. A second myth is that the 4% cap limits all seller-paid costs; in reality it applies only to the concession category, while normal closing costs the seller agrees to pay are not counted against it.
The practical point for Cedar Hills buyers: a concession request is a trade. Every dollar of seller-paid cost is a dollar off the seller's net, so the request should be sized to what the buyer actually needs and balanced against price and terms.
How Tres would evaluate this
A Cedar Hills veteran wants to keep cash in reserve and wonders how much the seller can cover. Tres reviews three things: the buyer's actual closing-cost and prepaid estimate so the request matches real numbers, whether the funding fee or a rate buydown is a better use of the 4% concession room, and how the request affects the strength of the overall offer compared with recent Cedar Hills sales.
This is an illustrative decision framework, not a description of a specific client or completed transaction.
What to verify before you decide
- Your actual estimated closing costs and prepaid items — so the request matches real numbers.
- Whether the funding fee, a rate buydown, or debt payoff is the best use of the 4% concession room.
- That the home is likely to appraise at the contract price including any financed costs.
- Which fees the VA prohibits you from paying, and who is covering them.
- That every concession is written explicitly into the purchase contract.
- How the concession request affects the seller's net and the strength of your offer.
Verify current VA concession, funding-fee, and fee rules with the U.S. Department of Veterans Affairs and a Utah-licensed mortgage banker.
