Blog Category: seller credits to closing costs

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