Costs

Seller Credits (Seller Concessions)

Seller credits, also called seller concessions, are money the seller agrees to put toward your closing costs as part of the deal. They lower your cash to close without changing your down payment. Each loan type caps how much a seller can give, so the credit only counts up to your actual costs, not as cash back.

On your Loan Estimate, seller credits show up in the Calculating Cash to Close section and pull your out-of-pocket number down. They’re a normal part of negotiation, especially when a seller would rather credit your costs than drop the price.

Two rules keep them honest. First, every loan type sets a limit on how much a seller can contribute, and the limit depends on the loan and your down payment. Second, the credit can only cover real costs, so you can’t pocket the leftover as cash. I’ll help you structure an offer that uses this room without bumping the cap.

Related terms

Closing Costs

Closing costs are the fees you pay to finalize your home purchase, on top of your down payment. They include lender fees, title and escrow charges, an appraisal, and prepaid items like taxes and insurance. Closing costs commonly run roughly 2% to 5% of the purchase price, though it varies by location and loan.

Cash to Close

Cash to close is the total amount of money you need to bring to the closing table. It rolls together your down payment and closing costs, then subtracts things already paid or credited to you, like your earnest money deposit and any seller credits. It's the real out-of-pocket number for closing day.

Earnest Money

Earnest money is a good-faith deposit you put down when your offer is accepted, showing the seller you're serious. It's usually held in escrow and applied toward your down payment or closing costs at closing. If the deal falls through for a reason your contract protects, you can often get it back.

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Last updated: June 13, 2026

This definition is educational and isn't an offer to lend or financial advice. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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