Consessions are an offering from the seller to pay for some/all of your closing costs up to the allowable limit. They are common when a buyer has little cash available for a down payments and closing costs.
In example, if you wanted to buy a home for $200,000, but didn't have the cash to pay to pay the $3,000 in closing costs, you might offer the seller $203,000 with $3,000 in seller concessions. You would pay more for the house, but the seller would cover $3k in closing costs to lower your out of pocket cash requirements. There are limits on the concession percentage, depending on the loan product you choose. You also have to be careful that it doesn't inflate the price of the house more than it will appraise for.
Starting Score: 627 EQ, 621 TU - 11/15/08
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