Blog Category: seller credits for closing costs

March 13th, 2014 house for sale
March 13th, 2014

Closing Cost Credits: Get Seller Credits or Lender Credits? What is a Lender Credit?

I sometimes have clients ask me how they can reduce the amount of cash they need to pay towards the purchase of a new home. Recently a client who was making an offer on a house that had an asking price of $650,000 wanted to make an offer of only $600,000 figuring that since they were putting 20% down, they’d save $10,000 by paying 20% down on $50,000 less in price. However, the house is worth what it is worth. And a buyer’s cash on hand has no bearing on where the house should be valued. Read More

Categories & Tags credit, Loan Process, , ,

March 2nd, 2020 Seller Credit Instead of Repairs
March 2nd, 2020

Getting A Seller Credit In Lieu Of Repairs

Seller Credit Instead of Repairs: What Homebuyers Need to Know

Updated September 2026

After a home inspection, a buyer and seller may agree that the seller will provide a credit instead of completing certain repairs. This can be convenient, but a seller credit is not the same as receiving cash to make repairs after closing.

A seller credit normally appears on the Closing Disclosure and reduces closing costs the buyer would otherwise pay at settlement. It generally cannot be used for the down payment, paid to the buyer as cash, or exceed the buyer’s allowable closing costs.

Seller credits are only one consideration when making an offer on a house or negotiating a sales contract. The proposed credit should be reviewed by the lender before the parties sign an addendum. Read More

Categories & Tags Underwriting Rules, , , , , 91 Comments »