Can the seller pay FHA closing costs?
Yes — up to 6% of the purchase price toward closing costs and prepaids. Seller credits cannot replace the buyer's minimum required investment.
What this actually means.
The 6% covers third-party fees, title, prepaids, and discount points. It does not cover the down payment. In a softer market, sellers will entertain credits in lieu of price reductions.
What this looks like on a real file.
Where this can move.
Gift source and donor eligibility, seller credit limits, down payment assistance program rules, and source-of-funds documentation can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.