You can ask the seller to pay part of your closing costs as a “seller concession” or credit in your offer. Each loan type caps how much the seller can pay: for conventional loans on a primary home, 3% of the price with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down; 6% for FHA and USDA; and 4% in concessions for VA. Sellers agree most often when homes have been on the market a while.
How it works
Your offer asks the seller to credit you a set amount, say $9,000, at closing. The credit pays your closing costs and prepaid items, so you bring less cash. The seller nets less from the sale. The credit can’t exceed your actual closing costs and generally can’t go toward your down payment.
Try it: Seller concessions calculatorSee the maximum concession for your loan and down payment, and compare a credit with a price cut.Limits by loan type
| Loan | Maximum seller contribution |
|---|---|
| Conventional, primary home or second home | 3% with less than 10% down; 6% with 10% to 25% down; 9% with more than 25% down |
| Conventional, investment property | 2% |
| FHA | 6% |
| VA | 4% in concessions (normal closing costs don’t count toward it) |
| USDA | 6% |
Credit or price cut?
A $10,000 credit and a $10,000 price cut cost the seller about the same, but they help you differently. The credit reduces the cash you need now; the price cut lowers your loan and payment by roughly $60 a month. If cash is tight, the credit usually helps more. You can also use a credit to buy down your rate or fund a 2-1 buydown, which can save more over time than a price cut.
When sellers say yes
- The home has been on the market for weeks; check with the days on market predictor.
- The local market is balanced or favors buyers; see the buyer leverage meter.
- The inspection found repairs, and a credit is simpler for the seller than fixing them.
- Your offer is at or near asking price.
In a competitive market, asking for concessions can make your offer weaker. Check with the offer strength score.
Price up, credit back
A common approach is to offer more and ask for the difference back as a credit, for example offering $410,000 with a $10,000 credit instead of $400,000 with none. The seller nets the same, and you need less cash. It only works if the home appraises at the higher price; see the appraisal gap calculator.
Know your closing costs first
Estimate them with the closing cost estimator so you ask for an amount you can actually use; any credit above your costs is usually lost.
Common questions
How much can a seller pay toward closing costs?
It depends on the loan: for conventional primary homes 3% to 9% depending on your down payment, 6% for FHA and USDA, and 4% in concessions for VA.
Can seller concessions pay my down payment?
Generally no. They can cover closing costs and prepaid items, but not the down payment.
Is a seller credit better than a lower price?
If cash is tight, usually yes. A price cut lowers your payment slightly; a credit lowers the cash you need now.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.