New York Seller Concessions, Attorney Credits and 2-1 Rate Buydowns
Updated October 2026
When a New York listing sits past the first weekend, the negotiation usually shifts from price to concessions, and that is often the better trade for a buyer. A $15,000 price cut on a $600,000 house saves roughly $85 a month. The same $15,000 applied to a 2-1 temporary buydown can cut the first-year payment by several hundred dollars, which is exactly where most buyers feel the squeeze. Understanding the concession caps before you write the offer is what makes that swap possible.
What Each Loan Type Allows
| Loan Type | Occupancy | Maximum Seller Credit |
|---|---|---|
| Conventional | Primary, under 10% down | 3% of price |
| Conventional | Primary, 10% to 25% down | 6% of price |
| Conventional | Investment property | 2% of price |
| FHA | Primary | 6% of price |
| VA | Primary | 4% plus all customary closing costs |
| USDA | Primary | 6% of price |
The credit can only pay actual costs. If your total closing costs, prepaids and buydown fee come to 4% and the seller agreed to 6%, the extra 2% evaporates. It cannot be refunded to you in cash, and it cannot be moved to the down payment. Price the costs accurately first with the closing cost estimator, then size the ask.
How a 2-1 Buydown Prices Out
A 2-1 reduces your rate by two points in year one and one point in year two, returning to the note rate in year three. The seller funds an escrow equal to the total interest savings. On a $700,000 loan at a 6.25% note rate, year one bills near 4.25% and year two near 5.25%, with the subsidy running roughly $17,000 to $19,000. Underwriting still qualifies you at the full note rate, so the buydown improves cash flow without loosening the approval. Compare the year-by-year difference in the amortization schedule, and weigh a permanent point purchase against the temporary structure using the ARM versus fixed calculator.
New York Specific Credits
Because closings here run through attorneys with table funding, the settlement statement carries line items you will not see in escrow states. Sellers routinely absorb the buyer's attorney fee, and in NYC a seller may agree to cover part of the mortgage recording tax, which runs 1.80% to 1.925% and can exceed $15,000 on a $900,000 loan. Upstate that tax is only 0.75% to 1.25%, so concession dollars go further toward a buydown instead. On purchases of $1,000,000 and up, the 1% mansion tax is customarily the buyer's obligation, but it is negotiable and worth raising.
Check current pricing on today's rates, review concession rules at the Consumer Financial Protection Bureau, and confirm STAR eligibility after closing. First-time buyers should also read the grant stacking guide.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
New York Seller Concessions, Attorney Credits and 2 1 Rate Buydowns — Separate monthly debt-service-to-income from upfront cash: down payment plus fees and prepaids, less deposits and approved credits. Avoid counting earnest money twice.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.