How Do I Get a Seller to Pay My Closing Costs or Buy Down My Mortgage Rate?

November 5, 2026 | Michael Belfor

The short answer: you get seller-paid closing costs or a mortgage-rate buydown by negotiating the concession into the purchase contract before closing. The key is not simply asking for “money back.” The concession has to fit the loan program, the buyer’s actual closing costs, the property value, and the seller’s motivation.

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And right now, sellers are more willing to negotiate than they were a few years ago.

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Redfin reported that 44.7% of buyers received seller concessions in August 2026, the highest August share in its records going back to 2020. Those concessions can include help with closing costs, repairs, and mortgage-rate buydowns.

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So yes — buyers should be asking.

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But they should ask strategically.

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I. START WITH THE SELLER’S PROBLEM

The easiest way to get a seller concession is to understand why the seller might say yes.

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Is the home sitting?

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Has the price already been reduced?

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Did it fall out of escrow?

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Is the seller carrying two homes?

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Does the seller need a fast close?

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Are there repairs they do not want to make?

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Is the seller emotionally attached to the asking price?

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That last one matters more than people think.

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A seller may refuse to reduce the price by $20,000.

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But the same seller may agree to a $20,000 credit toward eligible buyer costs because the recorded sales price stays higher.

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That can create a much better outcome for the buyer.

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II. ASK FOR A CREDIT WITH A JOB

I do not love vague contract language like:

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“Seller to credit buyer $20,000.”

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I want to know what that credit is supposed to accomplish.

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Maybe it pays:

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Lender fees.

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Title and escrow charges.

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Prepaid taxes and insurance.

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Discount points.

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A permanent interest-rate buydown.

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A temporary 2-1 buydown.

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Or a combination of eligible costs.

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The better we understand the buyer’s numbers before writing the offer, the more intelligently we can structure the request.

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III. HOW MUCH CAN A SELLER PAY?

This depends on the loan program.

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For Fannie Mae conventional loans, current rules generally allow financing concessions on principal residences and second homes of:

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3% when LTV is above 90%.

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6% when LTV is 75.01% to 90%.

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9% when LTV is 75% or less.

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For investment properties, the maximum is generally 2%. These percentages are calculated using the lower of the sales price or appraised value.

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But there is another important limit:

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The seller concession generally cannot exceed the borrower’s actual allowable closing costs. Excess financing concessions can be treated differently under the guidelines.

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You cannot simply ask for a giant credit and collect unused money as cash after closing.

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And FHA, VA, USDA, jumbo, Non-QM, and other programs can have different rules.

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That is why this should be checked before the offer is written.

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IV. RATE BUYDOWN OR CLOSING COSTS?

This is where I would run the numbers.

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Suppose the seller agrees to give you $15,000.

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Should you use it to cover closing costs?

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Or buy down the rate?

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The answer depends on what you need.

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If cash is tight, using the credit toward closing costs may be more valuable because it preserves reserves.

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If cash is fine but the monthly payment feels high, using some of the credit toward discount points may produce a better result.

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If a temporary 2-1 buydown is available and appropriate, the credit may reduce the payment significantly in the first two years.

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There is no universal best use.

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The money should solve the buyer’s actual problem.

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V. SOMETIMES FULL PRICE WITH A CREDIT BEATS A LOWER OFFER

Let’s use a simple example.

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Home price: $900,000.

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The buyer is considering two strategies.

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Option A:

Offer $880,000 with no seller credit.

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Option B:

Offer $900,000 and request a $20,000 seller credit.

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Which is better?

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You cannot answer that from the price alone.

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If the $20,000 credit covers most of the buyer’s closing costs and also allows a rate buydown, Option B could create far more immediate value.

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A $20,000 lower price does not reduce the payment by $20,000.

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It only reduces the amount financed.

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That is why I want buyers and agents to compare the payment and cash-to-close — not just the sales price.

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VI. THE OFFER HAS TO BE APPRAISABLE

There is a limit to getting cute with concessions.

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If the market supports $900,000, great.

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If the property is really worth $850,000 and we inflate the price to create a huge seller credit, the appraisal may stop the transaction.

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The financing still has to make sense.

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The property value has to support the contract.

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And the concession has to comply with the loan program.

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Negotiation does not override underwriting.

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VII. USE CERTAINTY AS LEVERAGE

Here is something buyers forget:

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A concession does not always require a weak offer.

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Sometimes the strongest negotiation tool is certainty.

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A fully underwritten buyer.

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Fast close.

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Short financing contingency.

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Short appraisal contingency.

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Strong documentation.

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Good communication.

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That can make a seller more willing to contribute toward costs because the seller believes the transaction will actually close.

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I would rather negotiate from strength than simply throw out a low offer and hope.

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VIII. DO NOT WAIT UNTIL THE END

The best time to negotiate seller-paid closing costs or a rate buydown is usually when the offer is being written.

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Can credits be negotiated later?

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Sometimes.

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Inspection findings can create another opportunity.

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An appraisal issue can change the discussion.

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But if you already know the buyer needs $15,000 toward closing costs, I would rather build that into the strategy upfront.

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Trying to invent the money three days before closing is not a strategy.

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THE BOTTOM LINE

Seller-paid closing costs and mortgage-rate buydowns are not loopholes.

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They are negotiation tools.

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And in today’s market, buyers are getting them.

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But the strongest strategy is not:

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“Ask for the biggest credit possible.”

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It is:

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Figure out what the buyer actually needs.

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Confirm what the loan program allows.

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Understand the seller’s motivation.

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Then structure the concession so it creates the most value.

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Sometimes that means closing costs.

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Sometimes points.

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Sometimes a temporary buydown.

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Sometimes a lower price.

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And sometimes it is a combination.

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The goal is not to win the negotiation on paper.

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The goal is to leave closing with the best overall financial position.

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ABOUT MICHAEL BELFOR

Michael Belfor is a Branch Manager and Loan Originator with American Pacific Mortgage, bringing approximately 24 years of mortgage lending experience.

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An APM President’s Club and Top 1% originator since 2017, Michael helps homebuyers, homeowners, real estate investors and real estate professionals navigate conventional, jumbo, FHA, VA, Non-QM, DSCR, TIC, condo, construction and other mortgage financing solutions.

California homebuyers asking how to get a seller to pay closing costs or buy down a mortgage rate should evaluate seller motivation, days on market, loan-program concession limits, allowable closing costs, discount points, temporary and permanent rate buydowns, appraisal support, cash to close, and monthly payment savings. Buyers in Orange County, Los Angeles, Riverside County, San Diego, San Francisco, Marin, Sonoma, and the Bay Area can use seller concessions strategically when negotiating conventional, FHA, VA, jumbo, and other mortgage financing.