With more inventory sitting on the market across Allen, Frisco, and the rest of DFW in 2026, buyers finally have room to ask sellers to help pay closing costs — something that was nearly impossible during the bidding-war years. But "seller concessions" aren't unlimited. Each loan program caps how much a seller can contribute. Here's exactly what you can ask for, and how to structure it into your offer.
What Are Seller Concessions?
A seller concession is money the seller agrees to credit back to you at closing — usually to cover closing costs, prepaid escrow items, or a temporary interest rate buy-down. It comes out of the seller's proceeds, not your loan amount, and it does not change your purchase price on paper. Instead of a price cut, you get cash back toward what you owe at the closing table.
2026 Seller Concession Limits by Loan Type
| Loan Type | Max Seller Concession | Notes |
|---|---|---|
| FHA | Up to 6% of price | Applies regardless of down payment amount |
| Conventional — under 10% down | Up to 3% of price | Lowest tier for smaller down payments |
| Conventional — 10%-24% down | Up to 6% of price | Mid tier |
| Conventional — 25%+ down | Up to 9% of price | Highest tier, larger down payments |
| VA | 4% for specific fees, plus standard costs | Standard closing costs and discount points stack outside the 4% cap |
| USDA | Up to 6% of price | Similar structure to FHA |
Limits reflect standard 2026 program guidelines. Some limits are also capped at your actual closing costs — a concession can never exceed what you're actually being charged. I confirm your exact number before you write an offer.
Why 2026 Is a Good Year to Ask
With DFW inventory rising and sellers outnumbering buyers in many submarkets, sellers are more motivated to close a deal than they were a few years ago. Instead of cutting the price outright — which can spook other potential buyers by resetting the comps — many sellers would rather offer a closing cost credit that keeps the sale price intact on paper while still making the deal work for you.
Three Ways to Use a Seller Concession
- Cover standard closing costs — title fees, appraisal, lender fees, recording costs
- Prepay escrow items — property tax and homeowners insurance reserves collected at closing
- Buy down your interest rate — a temporary 2-1 buy-down or a permanent rate buy-down, both of which I can structure using seller-paid funds
How to Ask Without Losing the House
Asking for concessions the right way matters as much as the amount. A few rules of thumb:
- Get pre-approved first. Sellers are far more willing to negotiate with a buyer who has a solid pre-approval letter in hand.
- Bake it into your initial offer, not a renegotiation. Asking for concessions after inspection can feel like a second negotiation and irritate sellers. Structure it in your first offer when possible.
- Consider offering close to list price in exchange. A "full price offer with 3% seller-paid closing costs" often reads better to a seller than a lowball offer with the same net effect.
- Know your max before you ask. I'll tell you your exact concession ceiling before you and your Realtor draft the offer, so you don't ask for more than your loan program allows.
Combine Concessions With Down Payment Assistance
Seller concessions and down payment assistance programs can often be layered together for maximum savings — DPA covers your down payment while the seller covers your closing costs. If you're a first-time buyer in Allen, Frisco, or anywhere in DFW, this combination can dramatically cut what you need to bring to the closing table.
What I Recommend
Before you or your Realtor draft an offer, text or call me at 469-545-7180. I'll calculate your exact concession limit based on your loan program and down payment, estimate your real closing costs, and help you decide whether to ask for a straight credit or a rate buy-down — whichever saves you more over the life of the loan.
Frequently Asked Questions
How much can a seller pay toward closing costs in Texas?
It depends on your loan type and down payment. FHA allows seller concessions up to 6% of the purchase price regardless of down payment. Conventional loans cap concessions at 3% with less than 10% down, 6% with 10-24% down, and 9% with 25% or more down. VA loans cap seller-paid closing costs at 4% for certain fees, though sellers can also pay standard closing costs outside that cap. I can calculate your exact limit myself — call or text me at 469-545-7180.
Can I ask for seller concessions in a competitive Texas market?
In much of DFW in 2026, yes. With more sellers than buyers in many submarkets, asking for a closing cost credit or rate buy-down is realistic — something that was rare during the 2021-2022 seller's market. Your Realtor and I can help you structure an offer that asks for concessions without scaring off the seller.
Do seller concessions raise my interest rate?
No. Seller concessions are simply the seller agreeing to pay a portion of your closing costs, prepaids, or a temporary rate buy-down out of their sale proceeds. Your interest rate is set by your lender based on your credit, loan program, and market rates — concessions just reduce what you owe at the closing table. I can walk you through the math myself at bondmortgagesolutions.com.
What's the difference between seller concessions and a price reduction?
A price reduction lowers your loan amount and down payment need. A seller concession instead covers your closing costs and prepaid items, which can be more valuable if you're cash-tight but comfortable with the loan amount. Some buyers negotiate both. I can help you decide which structure saves you more — call or text me at 469-545-7180.
Want to know your exact concession limit before you write an offer?
I'm Bond Peter Njoku (NMLS #2670329), and I run the numbers myself on your loan program and closing costs so you know exactly what to ask a seller for. Text or call me at 469-545-7180, message me on WhatsApp, or fill out my contact form.