Can a Seller Pay My Closing Costs in Texas?

Short answer: Yes — this is called a seller concession, and it’s a normal, negotiated part of many Texas contracts. The seller doesn’t write you a check; instead, the amount they agree to contribute is deducted from their proceeds at closing. How much they can cover depends on your loan type: up to 3% of the sale price for conventional loans (under 10% down), 6% for FHA, and 4% for VA.

How It Actually Works

A seller concession has to be written into the purchase contract as a specific dollar amount or percentage. It’s not automatic and it’s not implied — it has to be negotiated and agreed to before you get to closing. At the closing table, the seller’s proceeds are simply reduced by that amount, and it’s applied to your closing costs instead of coming out of your pocket.

The Caps by Loan Type

One important limit: the concession can’t exceed your actual closing costs. If you negotiate $15,000 but your real costs come to $12,000, the lender caps the credit at $12,000 — you can’t pocket the difference.

Why Sellers Say Yes to This

• It's often cheaper than a price cut. A $10,000 concession affects the seller's net the same way a $10,000 price reduction would, but it can be more attractive to a buyer on a monthly-payment basis, which can help the seller close the deal faster.
• It's more common in buyer's markets. With more inventory and longer time on market, sellers have more incentive to say yes to keep a deal together.
• It can come after inspection. If an inspection turns up issues, "cover part of my closing costs" is often used instead of "lower the price" or "fix everything," which can be simpler for both sides.

What This Means for Your Offer Strategy

If cash to close is your biggest hurdle, asking for a seller concession — rather than just a lower price — can sometimes get you into a home with far less money out of pocket, especially paired with an FHA loan’s higher 6% cap.

Bottom Line

Yes, a seller can pay your closing costs in Texas, but it has to be negotiated into your contract and it’s capped by your loan type. This is one of the most useful negotiating tools available to buyers in the current market — worth raising with your agent before you even write an offer.