Conventional loans are mortgages that are not insured or guaranteed by the government, such as FHA or VA loans.

Seller concessions are amounts paid by the seller towards the buyer's closing costs or other expenses, such as prepaid taxes or insurance, which can help make it easier for the buyer to purchase the home. The 6% limit is established by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that purchase conventional mortgages on the secondary market. It is important to note that the lender might have some overlay policies which means they might have a lower maximum allowance than what Fannie Mae and Freddie Mac allows.

If your down payment is less than 10%, the maximum seller contribution is 3%. If your down payment is 10–25%, the seller can contribute up to 6% of the purchase price. And for down payments greater than 25%, the maximum seller concession in 9%.