Seller Concessions 2026
What sellers can pay, limits by loan type, and how to negotiate $5,000–$15,000 in concessions.
James Mitchell
NMLS #567890 · Buyer's Agent & Mortgage Strategist
18 years negotiating purchase contracts and seller concessions. Helped 1,500+ buyers save an average of $8,200 at closing through strategic concession requests.
Quick Answer
Seller concessions are costs the seller pays on your behalf at closing — typically closing costs, prepaid items, or mortgage rate buydowns. They don't reduce the purchase price but reduce your cash needed at closing. FHA allows up to 6%, conventional 3–9% depending on down payment, VA up to 4% plus closing costs. In 2026, seller-paid rate buydowns are the most powerful use. → Get pre-approved to know exactly how much to request.
Seller Concession Limits by Loan Type (2026)
| Loan Type | Down Payment | Max Concession | Max on $350K Home | Notes |
|---|---|---|---|---|
| FHA | Any (3.5%+) | 6% | $21,000 | Most generous limits |
| Conventional | < 10% | 3% | $10,500 | Most common scenario |
| Conventional | 10–25% | 6% | $21,000 | Mid-range down payment |
| Conventional | > 25% | 9% | $31,500 | Large down payment |
| VA | 0% | 4% + closing costs | $14,000+ | Unlimited closing costs separately |
| USDA | 0% | 6% | $21,000 | Rural/suburban buyers |
Know your exact closing costs before making an offer — so you know exactly how much to request.
Get a Loan Estimate in 3 minutes. No SSN required.
What Can Seller Concessions Cover?
Lender Fees
- ✓Origination fee
- ✓Underwriting fee
- ✓Processing fee
- ✓Application fee
- ✓Rate buydown (discount points)
Third-Party Fees
- ✓Title insurance (owner's policy)
- ✓Title search fee
- ✓Appraisal fee
- ✓Survey fee
- ✓Attorney fees
Prepaid Items
- ✓Prepaid homeowners insurance
- ✓Prepaid property taxes
- ✓Prepaid mortgage interest
- ✓Initial escrow deposit
Other Costs
- ✓HOA transfer fees
- ✓HOA initiation fees
- ✓Home warranty
- ✓Recording fees
- ✓Transfer taxes (in some states)
Best Use of Seller Concessions in 2026: Rate Buydown
With rates at 6.5–7%, using seller concessions to buy down your rate is the highest-ROI use. Here's the math on a $350,000 loan:
| Scenario | Rate | Monthly P&I | Points Cost | Monthly Savings | Break-Even |
|---|---|---|---|---|---|
| No buydown | 6.75% | $2,270 | $0 | — | — |
| 1 point buydown | 6.50% | $2,212 | $3,500 | $58/mo | 60 months |
| 2 point buydown | 6.25% | $2,155 | $7,000 | $115/mo | 61 months |
| 2-1 Temp Buydown | Yr1: 4.75%, Yr2: 5.75% | Varies | ~$7,000 | $400/mo Yr1 | Immediate |
How to Negotiate Seller Concessions
Research days on market
Homes listed 30+ days are prime targets. Sellers are more motivated and more likely to accept concession requests.
Know your closing cost estimate first
Get a Loan Estimate from your lender before making an offer. Know exactly how much you need so you request the right amount.
Frame it as a win-win
Instead of "I need you to pay my closing costs," say "I'd like to offer full asking price with $8,000 in seller concessions." The seller nets the same.
Use inspection findings as leverage
If the inspection reveals $5,000 in repairs, request a $5,000 seller credit instead of repairs — you choose the contractor.
Don't exceed loan limits
Requesting more than the program maximum (e.g., 4% on a conventional with 5% down) will be rejected by the lender. Stay within limits.
In hot markets, be strategic
In multiple-offer situations, concession requests can lose you the deal. Consider a slightly higher offer price to offset your closing costs instead.
Get Pre-Approved & Know Your Closing Cost Needs
Know exactly how much to request in seller concessions before making your offer. Get a Loan Estimate in minutes.
Frequently Asked Questions
What are seller concessions?
Seller concessions (also called seller contributions or seller-paid closing costs) are costs that the seller agrees to pay on behalf of the buyer at closing. They can include: closing costs (lender fees, title insurance, appraisal), prepaid items (property taxes, homeowners insurance, prepaid interest), mortgage discount points to buy down the buyer's rate, and HOA fees. Seller concessions reduce the cash the buyer needs at closing but do NOT reduce the purchase price.
How much can a seller contribute to closing costs?
Seller concession limits by loan type: FHA loans: up to 6% of the purchase price. Conventional loans: 3% if down payment is less than 10%, 6% if down payment is 10-25%, 9% if down payment is over 25%. VA loans: up to 4% of the purchase price (plus unlimited closing costs). USDA loans: up to 6% of the purchase price. These are maximums — the actual amount is negotiated between buyer and seller.
Do seller concessions affect the purchase price?
No — seller concessions do not reduce the purchase price. The home must still appraise at the full purchase price. However, if the home appraises below the purchase price, the concession amount may need to be reduced proportionally. Some buyers negotiate a higher purchase price to "fund" the concession — for example, offering $310,000 with $10,000 in concessions instead of $300,000 with no concessions. This only works if the home appraises at $310,000.
When should I ask for seller concessions?
Ask for seller concessions when: (1) You have enough for the down payment but not closing costs. (2) The market is slow or the home has been sitting for 30+ days. (3) The inspection revealed issues the seller won't fix — request a credit instead. (4) You want to buy down your interest rate (seller-paid points). In a hot seller's market, asking for concessions can make your offer less competitive — weigh the tradeoff carefully.
Can seller concessions be used to buy down my mortgage rate?
Yes — seller-paid mortgage points (discount points) are one of the best uses of seller concessions. Each point costs 1% of the loan amount and typically reduces your rate by 0.25%. On a $350,000 loan, 2 points = $7,000 paid by seller, saving you ~0.50% on your rate. At 6.75% vs 6.25%, that saves ~$100/month or $36,000 over 30 years. This is called a "seller-paid rate buydown" or "2-1 buydown" and is increasingly popular in 2026.