Patriot Nation, here is the question I answer before almost every offer I write: "How much can I ask the seller to pay?" The answer is a number, set by your loan program, not by courage or wishful thinking. Here is the 2026 limit table, what the credit can actually cover, and the way to ask that gets a yes.
Know your cap before you negotiate.
I tell you the exact maximum credit for your loan type and down payment, then build the offer around it, so you ask like a pro, not a wishful buyer.
The 2026 limits, by loan type
| Loan type | Max seller concession | Notes |
|---|---|---|
| FHA | 6% of price | Flat cap, not tiered by down payment |
| Conventional, less than 10% down | 3% | Also applies to second homes and most investment terms |
| Conventional, 10% to 25% down | 6% | Measured on the lower of price or appraised value |
| Conventional, more than 25% down | 9% | The reward for a big down payment |
| VA | No cap on customary costs; 4% on other concessions | Points, prepaids, and the funding fee sit in the 4% bucket |
| USDA | 6% | Same flat style as FHA |
Limits reflect the 2026 program guidelines in effect for principal residences unless noted. Percentages are based on the lower of the sales price or appraised value under most programs.
Here's the key: the cap is the ceiling of the credit or concession line, not your down payment and not closing costs in a lender's broader sense. Your lender's own overlays can tighten the number, so confirm the cap on your specific file before you negotiate, then again on your Loan Estimate.
What a seller credit can cover
- Closing costs: lender fees, title, appraisal, and the settlement charges, the bucket that sinks unprepared buyers.
- Prepaids: tax escrow, homeowners insurance, and prepaid interest, covered inside most caps.
- Rate buydowns: yes, a credit can fund a 2-1 or 3-2-1 buydown, which is one of the smartest uses of a concession in 2026, as covered in the 2-1 buydown guide.
What it cannot cover: your required down payment, and on most programs the credit cannot exceed the actual costs, so an unused surplus generally does not flow back to you. Every dollar of the credit is documented on the Loan Estimate, which is why an oral "we'll take care of it" from a seller never counts.
Example: the math on a $350,000 FHA offer
Rounded example, not a quote
Illustrative only. The exact credit you request should match your actual costs and your negotiation, and it must fit inside your program's cap.
The full negotiation playbook, including counteroffers and the all-in-one package, is in the Texas offers guide, and the tactic-level detail is in the seller credit negotiation guide.
Ask inside the number, and sellers say yes.
A specific credit request attached to a real pre-approval is a normal ask in a balanced market. A vague demand is a red flag. I build offers the first way, every time.
How to ask without overreaching
- Know your cap first. The conversation starts with your loan type, down payment, and the specific dollar ceiling.
- Request a specific number. "Seller to contribute up to 4% toward buyer's closing costs, prepaids, and buydown" beats "seller pays all closing costs" every time, because it reads professional.
- Attach the pre-approval. The credit ask lands differently when a real approval letter is behind it.
- Bundle the whole package. Price, credit, repair concessions, and closing dates as one clean offer. Sellers say yes to certainty, and certainty is a package deal.
- Keep the credit inside your actual costs. Asking for more than you will spend wastes negotiation capital and invites a counter you do not want.
If you are facing competition, the competitive offer guide shows how to keep the credit while protecting your position, and buyers in multiple-offer situations get the full playbook in the multiple offer explainer.
Frequently Asked Questions
What are the seller concession limits in 2026? Tap to expand
What can seller concessions pay for? Tap to expand
How much of a seller credit should I ask for? Tap to expand
Can seller concessions cover my down payment? Tap to expand
Does asking for seller concessions weaken my offer? Tap to expand
Negotiate with the limit table in your pocket.
As your loan officer and agent on the same team, I match the credit to the program cap and the market, then write an offer that protects your cash and your position.
Patrick Kevin Fagan
Senior Mortgage Loan Officer and Texas REALTOR | AXEN Realty LLC | Greater San Antonio and Texas Hill Country
Licensed Sales Agent | 454749 | TX
Sincerely, Patrick Kevin Fagan
Concession limits reflect published 2026 program guidelines and can vary with lender overlays and property type. Dollar figures are labeled examples, not quotes. Confirm your cap on your own file.
