Can I Still Get Seller Credits to Help Lower My Interest Rate?

Greg Powell
Oct 7
3 min read

As mortgage rates remain higher than buyers were used to just a few years ago, many home shoppers across Central Oregon — from Bend to Redmond to Sisters — are looking for creative ways to make homeownership more affordable.

One of the best tools in the toolbox? Seller credits (also known as seller concessions). These can still help you buy down your mortgage rate, reduce upfront costs, and make your monthly payment far more manageable.

Let’s break down how it works — and when it’s a smart move.

What Are Seller Credits?

Seller credits are funds the seller agrees to contribute toward your closing costs. Instead of lowering the home’s price, the seller helps offset expenses that come with buying the property — such as:

Loan origination fees
Title and escrow charges
Appraisal fees
Property taxes and insurance reserves
Interest-rate buydowns (temporary or permanent)

In today’s market, these credits are once again a powerful negotiation tool.

How Seller Credits Can Help You Lower Your Rate

A mortgage rate buydown allows you to use seller credits to prepay interest upfront, which in turn reduces your interest rate for a set period (or permanently).

Example:

Let’s say you’re buying a $550,000 home in Redmond with a 30-year fixed mortgage at 7%.

Your lender might offer a 2-1 buydown, meaning your rate is 5% the first year, 6% the second, and 7% afterward.
The seller’s credit could cover the cost of that buydown — often $10,000–$12,000.

That can save you hundreds of dollars each month in your first two years of homeownership, making it easier to settle in while you wait for rates to drop.

Why Sellers Are Open to It

You might be wondering — why would a seller agree to this?

Because it helps their home sell faster and often for a stronger price.

Many Central Oregon sellers know that buyers are stretched thin right now. By offering a credit, they make their listing more competitive — especially when new construction or price reductions are common nearby.

In other words, everyone wins:

The buyer gets an affordable monthly payment.
The seller keeps their list price intact.

How Much Seller Credit Can You Ask For?

It depends on your loan type:

Conventional loans: Up to 3–6% of the purchase price
FHA loans: Up to 6%
VA loans: Up to 4%

If you’re working with a strong agent and lender, they can coordinate to make sure the credit is applied effectively toward your closing costs or rate buydown.

Central Oregon Market Insight

In markets like Bend and Redmond, seller credits have made a comeback. Homes are sitting longer — averaging 45–60 days on market in some price ranges — giving buyers more room to negotiate.

New construction neighborhoods in Redmond and La Pine are also advertising “builder-paid rate buydowns”, which are essentially large seller credits offered upfront.

If you’re shopping this year, it’s smart to ask your agent to target listings open to concessions — especially if the property has been listed for more than 30 days.

Yes — you can still absolutely get seller credits in 2025, and in today’s market, they’re one of the smartest ways to combat high interest rates.

If you’re looking to buy in Bend, Redmond, Prineville, or Sisters, a strategic use of seller concessions could save you thousands — and make that dream home more attainable than you think.