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The statement that the seller may contribute up to 4% of the closing costs on a VA loan is accurate because it aligns with the guidelines set by the Department of Veterans Affairs. VA loans are designed to make home buying more accessible for veterans, and one way to facilitate this is through seller concessions.

Seller concessions can help cover various costs associated with the purchase, including closing costs, which may ease the financial burden on the buyer. The 4% limit allows sellers to assist buyers by providing significant support in covering these expenses, making the transaction more feasible for veterans who may already be managing other financial responsibilities.

Understanding this aspect of VA loans is important for both buyers and sellers as it can influence negotiations during the home buying process. Proper comprehension of seller contributions can help veterans maximize their benefits and facilitate smoother transactions while also encouraging sellers to remain competitive in the market.