You know how the deal can look solid on paper, then the closing cost line item shows up and suddenly you are short on cash at the closing table.
That is why so many buyers try to get a seller to pay closing costs, especially when you want to keep more money in reserves after you buy a home.
In our brokerage work, led by Chief Editor Jay Hernandez (a licensed real estate broker with 15+ years of experience), the buyers who win these requests do two things well: they make the ask specific, and they make it easy for the lender to approve.
This guide walks you through what seller-paid closing costs really mean, what you can ask for, and how to negotiate it in a clean, financeable way.
Key Takeaways
- Closing costs vary a lot by state and loan structure. A 2025 Bankrate summary of LodeStar data shows purchase closing costs can run from under 1% to nearly 3% of the sale price in many states (before you factor in prepaids and points).
- “Upfront” usually means a seller credit applied at closing, not money the seller hands you before closing. Your lender will require the credit to be shown on the Closing Disclosure and tied to allowable charges.
- Conventional loan seller concession limits often follow Fannie Mae’s financing-concession caps: 3%, 6%, or 9% depending on your loan-to-value and occupancy, with a 2% cap for investment property deals.
- FHA generally allows interested party contributions up to 6% of the sales price for allowable costs, while VA draws an important line between seller concessions (capped) and ordinary closing-cost credits (treated differently under VA guidance).
- To improve your odds, ask for a capped amount (“up to $X”), pair it with strong terms (price, timelines, proof of funds), and have your agent run comps so the credit does not break the appraisal.
Exploring Seller-Paid Closing Costs: How to Get a Seller to Pay Closing Costs
Seller-paid closing costs are typically structured as a seller concession, which is a credit the seller agrees to give you at closing. It reduces the cash you need to bring, without changing your down payment requirement.
That “upfront” feeling comes from the math. The credit shows on your settlement paperwork and lowers your cash to close, even though the seller is paying it at closing, not weeks before.
Important distinction: A seller credit is not cash back to you. Your lender will only allow it to cover specific, documented closing costs and prepaid items, and any leftover amount usually cannot be handed to you as a refund.
Start by asking your lender for a realistic closing cost range, then decide what you want the seller to cover. Your loan estimate, settlement figures, and inspection results give you the “why” behind the request, and they keep the ask grounded in real numbers.
Defining Seller Concessions
A seller concession is a negotiated credit from the seller that helps pay for costs associated with your home loan closing. You bake it into the purchase contract so it appears on the Closing Disclosure and the title company can apply it the right way.
One detail buyers miss is how the cap is calculated on conventional financing. Fannie Mae’s guidance bases maximum financing concessions on the lower of the sales price or the appraised value. If you try to “solve” closing costs by inflating the price above what the appraisal supports, you can create a new problem.
When you ask the seller for a credit, keep it clean:
- Use “up to” language: “Seller to credit buyer up to $X toward allowable closing costs and/or discount points.”
- Keep it tied to allowable costs: Your lender will not approve a credit for vague items like “moving expenses.”
- Match the credit to your actual closing costs: If you ask for more than you can use, your lender may force a contract amendment.
- Plan for appraisal: If comps are tight, focus on a credit amount that still supports value.
Common Closing Costs Covered by Sellers
You can ask the seller to cover many routine fees, as long as your loan program and lender allow it. The easiest way to stay organized is to speak in the same categories your lender uses on the Loan Estimate and Closing Disclosure.
| Cost category | Examples you can target | Why it helps |
|---|---|---|
| Lender and loan costs | Origination charges, underwriting or processing fees (as shown by the lender) | These are often the biggest “buyer-paid” line items, so they move the needle fast. |
| Title and settlement services | Lender’s title insurance, title search, settlement or escrow fee | These costs are hard to avoid, and a seller credit can cover them without changing your loan structure. |
| Third-party services | Appraisal fee, credit report fee (where applicable), flood certification (if required) | These are easy to justify because they are required to close the mortgage. |
| Government and recording | Recording fees and local transfer-related charges (where applicable) | In some counties, these fees add up quickly and can drain your cash reserves. |
| Prepaids and initial escrow | Prepaid interest, homeowner’s insurance premium, initial escrow deposit | This is often the surprise section that pushes buyers over budget, even when lender fees look reasonable. |
One practical tip: ask your lender which items they will let the seller cover for your exact loan type. Some lenders treat certain prepaid items differently depending on program rules and local custom.
Techniques to Encourage Sellers to Cover Closing Costs
Sellers say “yes” to concessions when the request feels normal for the market, and when your offer reduces their risk. In an April 2025 report, Redfin found sellers gave concessions in 44.4% of U.S. home-sale transactions in the first quarter, which tells you this is a mainstream negotiation, not a weird ask.
If your market has rising inventory or listings that sit longer, you often have more room to ask the seller to cover pay closing costs through a credit.
Your job is to trade something the seller values (price certainty, timeline certainty, fewer headaches) for the credit you need.
Propose Full Asking Price
Offering full asking price can give you leverage to request seller-paid closing costs, especially when the seller cares about the headline number. You are basically saying, “I will meet your number, if you help me handle the cash-to-close.”
Do the math before you pitch it. If you raise the price to fund a credit, your lender will still rely on the appraisal. If the home is already priced at the top of the comps, pushing the price higher can trigger a low appraisal and force a renegotiation.
A clean way to frame it is:
- Price stays strong: you offer at or near list price.
- Credit is capped: you ask for “up to $X” toward allowable costs.
- Timeline stays tight: you keep inspection and financing timelines realistic and prompt.
Discuss Cost-Sharing Negotiations
You do not have to ask the seller to pay for closing costs in full. A partial seller concession can still solve the real problem, which is getting your cash-to-close to a number you can actually fund.
Keep your request targeted. Pick the fees that matter most and avoid a long wish list.
- Option A (simple credit): Ask the seller to credit you up to $X toward allowable closing costs and points.
- Option B (split the gap): You cover third-party costs (like appraisal and inspection), and the seller covers title and lender fees with a capped credit.
- Option C (payment relief): If your loan allows it, ask the seller to fund a temporary rate buydown instead of, or in addition to, a closing cost credit.
Ask your lender to confirm how any unused seller credit will be handled. Many loan programs do not allow you to pocket extra credits, so you want the contract language to stay flexible without creating waste.
Point Out Advantages to the Seller
Sellers are often more open to concessions than price cuts because concessions can solve your funding issue while keeping the sale price stable for comps. That is the “why” you want to explain clearly.
Bring a short, numbers-based summary to the conversation:
- Your limit: the maximum seller credit your loan type will allow.
- Your need: the closing cost amount you are trying to cover.
- Your trade: what you are giving the seller (price, speed, fewer repairs, flexible possession).
- Your proof: your mortgage pre-approval and any proof-of-funds the seller needs to feel confident.
This approach helps the seller see a fast, low-drama closing instead of a buyer stretching to the edge.
Steer Clear of Low Offers
Low offers plus high concessions rarely land well. If you want the seller to cover your closing costs, keep the deal balanced.
In my experience, these are the most common mistakes that sink a seller-paid closing request:
- Asking for a big price discount and a big seller credit at the same time.
- Requesting a credit that is bigger than your actual allowable closing costs.
- Stacking too many repair requests on top of the credit, especially for cosmetic issues.
- Ignoring appraisal risk by inflating the offer price just to “create room” for the concession.
Effective Negotiation Tactics
To convince the seller to pay closing costs, you need more than a strong offer. You need clean documentation and a timeline that matches how mortgage closings actually work.
The Consumer Financial Protection Bureau explains two timing rules that matter here: lenders generally must provide a Loan Estimate within three business days after you apply, and they must provide a Closing Disclosure at least three business days before closing.
| Stage | What you do | Why it helps your seller concession request |
|---|---|---|
| Before you offer | Get a true pre-approval and confirm your seller concession limits with your lender | You avoid asking for a credit your loan cannot accept. |
| Offer writing | Write a capped credit and keep terms clean | Sellers accept clean offers more often than “messy” ones. |
| After contract | Move quickly on inspection, appraisal, and lender docs | Speed reduces the seller’s fear that the deal will fall apart. |
| Before closing | Review the Closing Disclosure carefully and confirm the seller credit is shown correctly | This is where you ensure the concession actually reduces your cash to close. |
Secure Mortgage Pre-Approval
Get pre-approved before you ask the seller for anything. A pre-approval is stronger than a casual pre-qualification because it is built on real income, asset, and credit review.
Most lenders use automated underwriting systems to speed this up, such as Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Product Advisor. The “so what” is simple: when your lender has an automated approval finding early, your file usually moves with fewer surprises.
To keep your pre-approval strong, have these ready:
- Recent pay stubs and W-2s (or tax returns if self-employed)
- Bank statements showing funds for down payment and reserves
- A clear explanation for any large deposits
- A plan to avoid new debt while you are under contract
Prepare for Swift Action
Once you have found a home, speed and clarity help you negotiate. Sellers want to believe you will close on time.
Build a simple execution plan and stick to it:
- Schedule the home inspection quickly and focus repair requests on safety or system issues.
- Send lender documents the same day when possible, so underwriting does not stall.
- Ask your lender when the Closing Disclosure will be issued, since federal rules require it at least three business days before closing (per the CFPB).
- Check that your seller credit is written and labeled consistently across the contract, lender file, and title file.
Partner with a Skilled Real Estate Agent
A strong real estate agent helps you negotiate seller concessions without creating appraisal or underwriting problems. In the Texas Brazos Valley, you can work with an experienced local agent such as Jay Hernandez at Berkshire Hathaway HomeServices Caliber Realty to run comps and structure the credit cleanly.
Your agent should help you answer three questions before you ask the seller to pay your closing costs:
- Is the home priced to appraise? This affects how aggressively you can structure a concession.
- What is the seller’s real motivation? Timeline, net proceeds, and repair tolerance change the best negotiation angle.
- What is the cleanest way to write it? Clear “up to $X” language reduces back-and-forth later.
The right agent also keeps your lender and title company aligned so the seller-paid closing costs actually show up on the final numbers.
Mortgage Options Permitting Seller Concessions
Your loan type determines how much a seller may contribute and what the lender will allow the credit to pay for. HUD policy for FHA, VA program guidance, and Fannie Mae’s conventional rules set the main caps and definitions that lenders follow.
| Loan type | How seller help is capped | Practical takeaway for your offer |
|---|---|---|
| FHA | Interested party contributions are typically allowed up to 6% of the sales price for allowable costs. | Write a capped credit and confirm which fees and buydowns your lender will treat as allowable within the limit. |
| VA | VA limits certain seller concessions to 4% of the appraised value (often described as “reasonable value”), and treats ordinary closing-cost credits differently. | Ask your lender which items count toward the 4% cap so you do not accidentally structure an excessive concession. |
| Conventional (typical Fannie Mae framework) | Financing concessions commonly cap at 3%, 6%, or 9% based on LTV and occupancy, with a 2% cap for investment property. | Your down payment level impacts your maximum seller concession, so confirm the cap before you write the offer. |
FHA Loan Benefits
FHA loans can be flexible for buyers who need help with payment and closing costs. Under HUD’s FHA policy framework, interested party contributions are generally allowed up to 6% of the sales price for allowable costs, which can include origination fees, other closing costs, prepaid items, discount points, and certain rate buydown structures.
Two rules matter in real life:
- You cannot use the seller’s money as your down payment. The contribution is meant to cover allowable costs, not your minimum required investment.
- The credit must match real charges. If the credit exceeds your actual allowable closing costs, your lender may require a reduction or a contract change.
If you are using FHA and need the seller to cover pay closing costs, ask your lender for a target number that fits the limit and your estimated costs, then write the contract credit as “up to” that amount.
VA Loan Advantages
VA loans give eligible buyers a powerful way to reduce cash at closing, but you need to use the VA definitions correctly. VA guidance draws a line between seller concessions (extra items of value) and ordinary closing costs that the seller may pay.
Items that commonly count as seller concessions include things like paying the VA funding fee on your behalf, covering certain prepaid items beyond what is customary, paying off buyer debts, or funding a temporary rate buydown.
Action step: ask your lender for a VA-specific breakdown of what they will classify as a concession versus a standard closing-cost credit. That one clarification can prevent a last-minute contract rewrite.
Features of Conventional Loans
Conventional loans can allow meaningful seller-paid closing credits, but the limit depends on your occupancy and your loan-to-value ratio. The practical point is that your down payment size can change the maximum seller concession you can request.
If you are buying a primary residence with a small down payment, you may be limited to a smaller concession cap than someone putting more down. Investment property deals are usually the most restricted.
Before you negotiate with the seller, have your lender answer one question in writing: “What is my maximum seller concession for this loan structure?” Then write the concession as a capped credit that stays inside that limit.
Conclusion
If you want a seller to pay closing costs upfront, focus on structure and clarity. You are usually asking for a seller credit applied at closing that reduces your cash to close, not a check handed to you early.
Get an estimate from your lender, secure a strong pre-approval, and work with a skilled real estate agent to negotiate a capped seller concession that fits your loan rules. Offer a fair purchase price, keep your requests tight, and you will improve your odds of getting the seller to cover the closing cost items that matter most.
FAQs
1. How can I ask a home seller to pay closing costs upfront?
Ask the home seller to cover escrow fees as part of your offer. In home buying, you can offer a slightly higher price with the seller and ask them to pay closing costs upfront.
2. How much will a seller pay in closing costs?
Closing costs are typically 2 to 5 percent of the price of the home. Closing costs may vary by state, lender, and local custom.
3. Will a seller agree to pay the full closing costs?
It depends, the seller wants the best net sale price, so asking them to pay the full closing costs would lower what they get. Pay in closing costs depends on market heat and what sellers usually accept in your area.
4. What can I do to reduce closing costs or get an estimate?
Get an estimate from your lender and escrow company. Line item quotes help you reduce closing costs and show which fees the home seller could cover. Use those numbers in talks with the listing agent to show what the seller gets if they agree.
