Definition
Seller contributions to buyer closing costs, typically limited to a percentage of purchase price by lenders.
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Closing cost credits reduce net proceeds but may enable deals. Lenders typically allow 2-6% seller concessions depending on loan type and buyer equity.
Pro Tip
Verify lender closing cost credit limits before offering; exceeding limits may prevent loan approval.
Example
Seller offering 3% closing cost credit ($12,000) on $400,000 sale.