How do seller credits work?
A seller credit is money the seller contributes toward your closing costs or, in some cases, a rate buydown. Permitted amounts and uses depend on the loan program and lender rules.
Closing Costs · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
Applied to closing costs, a credit reduces cash needed at the table without changing your payment.
Applied to a rate buydown, the same dollars lower your monthly payment for as long as you keep the loan.
Credits generally cannot exceed actual costs, and programs cap contributions, so confirm the specifics with your lender before negotiating.
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