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Credits/Concessions vs. Down Payment % (USA)

(Assume conventional USA loan)

The lender tells you that you aren't able to take full advantage of the seller concessions because it would result in your not coming to the table with 5% of your own $.

Which of the following line items on the closing disclosure count toward that 5% requirement?

  1. Earnest money deposit

  2. Closing costs paid before closing (e.g. appraisal, credit check fees that you've already paid)

  3. Adjustment down to reflecting seller's unpaid property taxes from January to closing

  4. Cash to close

---

The lender is telling me that 1, 3, and 4 need to total >=5%. Having a hard time seeing how credit from seller for partial year property taxes is considered part of the down payment amount, but #2 is not. Anyone help?

submitted by /u/whoever12
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source https://www.reddit.com/r/RealEstate/comments/fs3u1x/creditsconcessions_vs_down_payment_usa/
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