Some recent investment property 30 year fixed financing transactional examples :- 20% down conforming Jumbo at 6.625% with .25% in lender costs and a lender credit - $7500 seller concession - 20% down conforming Jumbo at 6.875%. with 1% in lender costs and a lender credit - $15K seller concession - 20% down conforming townhome at 6.375% with .5% lender costs and a lender credit - 2% seller concession- 15% down non conforming at 6.875% no PMI with 1% lender costs and a lender credit + 1 year PPP  -10% down conforming jumbo second home loan* at 6.75% with .75% lender costs and lender credit  - 50% down confirming at 5.625% with .5% lender costs and lender credit - $5K seller concession - 20% down conforming super jumbo at 6.875% with 2% lender costs and small lender credit - 2% seller concession In the majority of investment property transactions his year we have been able to negotiate seller concession of 1-2% to cover all or the majority of closing costs and prepaid items. 

The examples below ignore closing costs and prepaids for illustratiion purposes.Examples:1.

Any other closing costs would be third party related like title/escrow fees (any co. you like) and prepaids for property taxes & insurance.

But they're expensive. cool. if something was a no prepaid and 1 origination what sort of rate and LTV are you seeing?

Update 3/27/25: After I cancelled my contract with Evernest, they found a way to charge me extra, retained my security deposit and said I owed them another $80 somehow despite the fact that I prepaid for every service and contractor.Experience was in fact so bad, that I’ve listed the property for sale and will likely take a loss on it.

Each dollar of prepaid principal should have a strategic reason behind it, such as getting a particular loan/property down to a certain LTV for a future refi or a recast.

I think you loan officer is referring to line items F & G, which are prepaid property taxes, interest, and insurance ($15,094).  

Definitely try to do a recast on the property with a lot of equity down or any property you have prepaid.

I’ve seen situations where added title work, surveys, or certain prepaid items push the percentage up, but it’s worth asking your closing agent for a full breakdown so you can see exactly what’s driving it.

In most cases, it’s simply a price adjustment in disguise—one that your lender allows you to apply toward certain costs like closing fees, prepaid expenses, or interest rate buydowns.