Can the Seller Pay Your Closing Costs in Pinal County?
Quick answer: Can the seller pay your closing costs in Pinal County, including San Tan Valley and Florence? Yes. In Pinal County, the seller can pay part of your closing costs, and it's a normal thing to ask for in an offer. Each loan type has its own cap: FHA and USDA allow up to 6% of the price, VA allows up to 4% in concessions, and conventional loans allow 3% to 9% for a home you'll live in. The seller credit can't cover your down payment, so plan for that separately.
Hi, I'm Andria Townsend. I'm a loan officer with NEXA Mortgage, and I've lived in Arizona for more than 15 years. I'm based right here in San Tan Valley.
It's one of the most common questions first-time buyers have: can the seller help pay my closing costs? In Pinal County, the answer is often yes. Here's how seller-paid closing costs work, what the limits are, and how to ask.
Why would a Pinal County seller agree to pay closing costs?
A seller credit is a normal part of negotiating. When a home has been on the market for a while, a credit toward your closing costs can be easier for a seller than a bigger price drop. Both sides can still get a deal that works.
Your agent can tell you how long homes are sitting in the area you're shopping and whether sellers there are saying yes to credits. That's a good guide for how much to ask for.
What are closing costs, and what can a seller pay for?
Closing costs are the fees to finish your loan and your purchase. Think lender fees, title and escrow, the appraisal, and recording fees.
There are also prepaids. These set up your escrow account for property taxes and homeowners insurance, and cover your first bit of interest.
A seller credit, also called a seller concession, can usually go toward:
- Lender and title fees
- Prepaid taxes and insurance
- Discount points, if you choose to buy down your rate
- On some loans, HOA dues for a set time after closing
Buying in an HOA community? Transfer and other HOA fees at closing are their own negotiation. See my guide to Arizona HOA transfer fees at closing.
Here's the big one. A seller credit can't be used for your down payment. It also can't be paid to you as cash back.
How much can a seller pay toward closing costs on each loan type?
Every loan program sets its own cap. Here's a simple look.
FHA loans
The seller and other interested parties can pay up to 6% of the sales price. On a $390,000 home, that's up to $23,400. Anything over the cap is treated as an inducement to buy, and it lowers the value FHA uses to figure your loan amount.
VA loans
VA caps seller concessions at 4% of the home's reasonable value, which comes from VA's Notice of Value. Credits for your loan's normal closing costs aren't capped and don't count toward that 4%. So the seller may be able to cover more than it looks at first. Other help, like paying your VA funding fee, does count toward the 4%.
USDA loans
USDA caps seller and interested party contributions at 6% of the sales price. Parts of Pinal County are USDA eligible, so check the address before you write an offer.
Conventional loans
Fannie Mae's cap for a home you'll live in ranges from 3% to 9%. It depends on how much you borrow compared to the home's value. The more you borrow, the lower the cap. For an investment property, it's 2%.
Just remember, you can't use more than your actual closing costs. If your costs are lower than the cap, the credit stops there.
Subject to eligibility, credit approval, and program guidelines. Programs can change.
What does this mean for first-time buyers in San Tan Valley and Pinal County?
It means you may need less cash at closing than you think. Your down payment is one bucket. Your closing costs are another. A seller credit can shrink the second one.
You can also stack help. A seller credit can pair with down payment help, like the Arizona Is Home program I wrote about here. One covers the down payment side. The other covers closing costs.
The key is to plan the ask before you write the offer. Your loan type sets your cap. So get pre-approved first, then ask for a number that fits. Once you're under contract, your lender reports where your loan stands on the Arizona Loan Status Update (LSU).
What does this mean for Pinal County sellers?
If your home has been on the market a while, a closing cost credit can bring buyers to the table. It may help more than a price cut, since it lowers the buyer's cash to close.
Talk with your agent about what's working in your area. Queen Creek, Casa Grande, Maricopa, and San Tan Valley can each move a little differently.
What does this mean for current homeowners?
If you're thinking about selling and buying your next home, this cuts both ways. You may offer a credit on your sale. You may also ask for one on your purchase. It's worth running both sides with your lender and agent.
How do I ask the seller to pay my closing costs?
- Get pre-approved. Know your loan type and your estimated closing costs.
- Ask your agent to write it into the offer. It's usually a dollar amount or a percent of the price.
- Stay under your cap. Your lender can confirm the max for your loan.
- Keep the whole offer in mind. Some sellers will say yes to a credit if the price is close to asking.
- Check the appraisal. The home still needs to appraise at the contract price.
Seller-paid closing costs in Pinal County: FAQ
Can the seller pay all of my closing costs?
Sometimes, if your costs fall under your loan's cap. The credit can't go past your actual closing costs, and it can't cover your down payment.
Is a seller concession the same as a price cut?
No. A price cut lowers the price. A concession keeps the price and gives you a credit at closing to use toward costs.
What's the FHA seller concession limit in Arizona?
Up to 6% of the sales price. That's set by FHA, so it's the same in Pinal County as anywhere else.
What's the VA seller concession limit?
Up to 4% of the home's reasonable value. Normal closing costs don't count toward it.
Can I use a seller credit and down payment assistance together?
Often, yes. Each program has its own rules, so check with your lender before you write the offer.
When should I ask for a seller credit?
Ask in your first offer. It's harder to add later, and your lender needs it in the contract.
Ready to find out how much you can ask for?
I'll look at your loan options, estimate your closing costs, and help you and your agent plan the right ask. It's a quick conversation, and there's no pressure.
Get pre-approved or ask me a question at andriatownsend.com. You can also call me at 480-487-9166 or email [email protected].
This is general information, not tax or legal advice. Talk with a tax pro or attorney about your situation.
Andria Townsend, Mortgage Loan Originator, NMLS #2154631. NEXA Mortgage, LLC, NMLS #1660690. Equal Housing Opportunity. This is not a commitment to lend. All loans subject to credit approval, underwriting, and program guidelines.
