Purchase · 4 min read
How much can a seller pay toward my closing costs in 2026?
July 30, 2026 · Written by Bill Egan, NMLS 7342
Short answer
The loan program sets a maximum. Typical ceilings are 6 percent of the price on FHA, 4 percent on VA, and 3, 6, or 9 percent on conventional depending on your down payment. That is a cap, not a promise, and it cannot be more than your actual allowed costs. A temporary rate buydown is a kind of concession, and it still has to fit the cap and the contract.
01
Why this comes up
You want the seller to pay closing costs or buy the rate down, and you do not know the cap. The listing agent wants a number before they write the offer. You are afraid of asking for too much — or of a buydown that explodes in year three.
02
Where this goes wrong
The contract asks for more credit than the program cap. Underwriting will not allow it. The seller will not rewrite. Or a buydown is treated as the permanent payment and year three does not fit. Closing is stuck on a concession that should have been sized before the offer.
03
What we do about it
We tell you which cap applies to the product before the offer goes out. Typical ceilings are 6 percent on FHA, 4 percent on VA, and 3, 6, or 9 percent on conventional depending on down payment. That is a ceiling, not a check. We will not treat a two-year buydown as your permanent payment.
04
How to get ready
Know the cap before you write. Credits cannot exceed actual allowed costs. A 2-1 buydown still needs a payment you can make when it expires. You and the agent negotiate. We will tell you what the loan will allow. We will not invent cash back at the table.