A lower price is one option. Compare the others.
Before you make an offer, see what a price reduction or seller credit could mean for your monthly payment and cash to close. Your agent and I work together on the offer details and financing numbers.
A seller credit is money the seller agrees to put toward permitted buyer costs. We’ll compare the ways you could use it.
What would help you most?
Review options side by side.
Have a property in mind? Let’s compare:
See the down payment, loan amount, closing costs, monthly payment, and cash to close for each. We can compare with or without seller credits, so you and your agent can decide what to ask for.
We’ll use current estimates and check which options fit your situation before you make an offer.
How much can the seller contribute?
Your loan program sets a limit. You can only use the credit toward eligible costs, so we’ll check both the program limit and your actual costs before you ask.
Maximum contributions toward closing costs and prepaids: The limits below apply to seller and other interested-party contributions, including eligible agent credits. Lender credits can follow different rules.
Conventional
Fannie Mae limits for a main home or second home
- LTV/CLTV above 90%3%
- LTV/CLTV 75.01%–90%6%
- LTV/CLTV 75% or less9%
- Investment property2%
Percentage of: the lower of the purchase price or appraised value, not the loan amount.
How does the lender calculate these limits?
LTV compares your loan amount with the home value used for the loan. CLTV includes a second mortgage or other loan secured by the home. A low appraisal or second loan can change the limit, so your down payment alone may not tell the whole story. Other conventional or jumbo loans may have different rules.
FHA
Percentage of: the sales price.
For a standard forward purchase mortgage, interested parties can cover eligible origination charges, closing costs, prepaids and discount points. Seller-funded temporary or permanent buydowns share the allowance.
What should I know about FHA credits?
Seller and agent credits share this limit. They can’t replace the down payment you’re required to make. If the credit is too large, it can change the amount you’re allowed to borrow. We’ll check the details for your loan.
VA
Percentage of: the established reasonable value on the VA Notice of Value.
This is not a cap on all seller-paid costs. Ordinary buyer closing costs and normal discount points are outside that concession cap. Items such as funding-fee payment and prepaid insurance may fall within it.
Ask the lender to classify each proposed credit by its use. Do not apply the conventional or FHA calculation to a VA loan.
What if your agent offers you a credit?
If your agent offers a credit, we’ll add it to any seller credit and check how much you can use toward your closing costs.
The seller paying your agent’s commission is a separate item. We’ll make sure it is documented correctly. VA credits need to be classified by how they are used.
Know your costs before you ask for a credit.
Your agent and I confirm the planned closing date and title and escrow details. I work through those fees, your down payment, and your insurance quote to build a more accurate estimate. Then we can figure out how much seller credit you can actually use.
Get your homeowners insurance quote early. It helps us plan for the premium and any insurance reserves due at closing.
For example, if your loan allows the negotiated credit:
If only $15,000 of costs are eligible, the remaining $5,000 is not automatically cash back or a price reduction. We’ll review any permitted options before closing. A contract change needs the seller’s agreement and lender approval.
Negotiate credits you can actually use. Don’t pay unnecessary fees just to spend a credit.
That’s why we work out the costs early, while there is still time to discuss changes with the seller.
A few details to confirm.
Credit limits, appraisal and buydown details
- Program limits differ. Loan type, occupancy, down payment and actual eligible costs can limit the usable seller contribution. Do not assume one percentage applies to every loan.
- Unused credit is not free cash. Under Fannie Mae rules, seller contributions cannot fund your down payment or reserves. Excess concessions can affect the value used for underwriting. Resolve unused credit with the lender and agent before closing.
- The appraisal still matters. A higher price paired with a credit must meet the lender’s value and loan-to-value requirements.
- Temporary relief is temporary. For covered Freddie Mac fixed-rate buydown loans, qualification uses the note-rate payment. Ask for the written treatment of remaining subsidy funds if you sell or refinance.
Where is there room to negotiate?
Ask your agent about the home’s time on market, price changes and competing listings. A home with several offers is different from one that has been sitting.
Seattle market examples · August 2026
of Seattle-metro purchases in Redfin’s buyer-agent sample included seller concessions during the three months ending August 2026. That is evidence of opportunity, not a standard credit amount or a promise for your offer.
Redfin also estimated 72% more sellers than buyers in the Seattle metro in August 2026. Its national gap was the largest in its series beginning in 2013. These are estimates that can be revised, and bargaining power still depends on the home.
NWMLS’s August 2026 snapshot shows that difference: Seattle had 3.41 months of inventory for residential-only properties versus 7.77 months for condos. That is a reason to investigate negotiating room, not a promise a particular seller will pay your costs.
Ask your agent what is realistic for this home. I’ll help you compare the financing choices before you write the offer.
Program guidance and dated market data support this guide. They do not establish loan eligibility or a seller’s willingness to negotiate.
Sources and program details
- HUD: FHA Single Family Housing Policy Handbook
- VA: funding fee and closing costs
- Fannie Mae: buyer-agent compensation clarification
- HUD: buyer-agent commission clarification
- Redfin: August 2026 concessions sample
- Redfin: estimated buyers and sellers
- CFPB: points and lender credits
- CFPB: compare Loan Estimates
- Fannie Mae: seller contributions and limits
- Fannie Mae: temporary buydowns
- Freddie Mac: temporary subsidy buydowns
- NWMLS: August 2026 King County and Seattle data
Put the options in context
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