with Joey Milam
If you’ve heard the phrase “seller paid closing costs” but weren’t totally sure how it works (or how to ask for it), this episode is for you.
In Episode 005 of the ILMrealtor Podcast, I’m joined by Joey Milam (Alpha Mortgage Advantage), a top-producing loan officer here in southeastern North Carolina, to break down how seller credits, buyer credits, and creative financing strategies can change the numbers in a big way — all in plain English.
Hey friend — I’m Tabetha (Tabi) Klein, aka theILMrealtor. I help people buy and sell homes in Wilmington, North Carolina (and all over New Hanover, Brunswick, and Pender). This podcast is all about making real estate feel less intimidating and more doable.
Watch or listen: YouTube · Spotify · makingilmhome.com · @theILMrealtor
In this episode, you’ll learn:
- What seller paid closing costs are (in plain English)
- How buyer credits can reduce out-of-pocket costs at closing
- What seller credits can and cannot be used for
- Why there are limits on concessions (and how those limits affect negotiations)
- When it makes more sense to use credits for a rate buydown vs. cash to close
Meet Joey Milam (Alpha Mortgage Advantage)
Joey Milam is a lifelong Wilmington local (Laney ’03, UNCW ’07) and a Mortgage Loan Advisor with Alpha Mortgage Advantage. He’s consistently been one of the highest-producing loan officers within Alpha Mortgage and is known for solving tough loan scenarios — especially helping buyers who’ve been told they “can’t buy” find a realistic path forward. His style: honesty, transparency, and clear communication, so buyers aren’t left guessing what happens next.
What Are Seller Paid Closing Costs?
Seller paid closing costs are exactly what they sound like: the seller agrees to contribute money toward the buyer’s allowable closing costs as part of the negotiation. Instead of the buyer bringing that portion of cash to closing, the credit is applied at settlement — which can make a huge difference for buyers trying to keep more money in savings, manage moving costs, or avoid stretching their budget too thin.
What Can Seller Credits Be Used For?
Seller credits can generally be used for allowable closing costs and prepaid items (depending on loan type and guidelines). Common examples include:
- Loan-related costs (origination, underwriting, processing, etc.)
- Title work and attorney/settlement fees (varies by market and closing structure)
- Prepaids like homeowner’s insurance, interest, and escrow reserves
- In some cases, structured financing options like a temporary or permanent rate buydown
That last point is where this gets interesting: sometimes using seller contributions strategically can affect the monthly payment — not just the cash needed at closing.
Limits on Seller Credits: The Rule That Changes Everything
One of the biggest takeaways is that you can’t just ask for unlimited seller credits. Guidelines cap how much a seller can contribute, and those limits depend on things like:
- Loan type (conventional, FHA, VA, etc.)
- Down payment amount
- Occupancy type (primary residence vs. investment)
That means negotiation has to be structured intelligently. Joey walks buyers through what’s possible before writing the offer — so expectations match reality.
Negotiation Strategy: How Buyer Credits Work in Real Offers
If you’re buying in Wilmington, seller credits are part math and part communication. Joey explains how he and the agent can structure options, such as:
- Option A: reduce cash to close
- Option B: use credits toward a rate strategy to impact the monthly payment
- Option C: balance the offer price + credits in a way that still works for the seller
From the seller’s perspective, credits aren’t “free” — they impact net proceeds. That’s why making the offer clear (and reasonable) is so important.
First-Time Homebuyers: What to Know Before You Negotiate
- Ask your lender what seller credits you qualify for (based on loan type)
- Understand your “cash to close” comfort zone
- Talk through whether lowering payment or lowering cash matters more for you
- Make sure your agent and lender are aligned before submitting an offer
- Don’t wait until the last minute — closing on time matters
Episode Chapters
- 00:00 Introduction
- 01:12 Getting to Know Joey Milam
- 01:57 Understanding Seller-Based Closing Costs
- 06:09 What Can Seller Credits Be Used For?
- 07:35 Typical Closing Costs Explained
- 09:07 Limits on Seller Credits
- 11:38 What Seller Credits Cannot Be Used For
- 16:45 The Importance of Communication in Negotiations
- 18:23 Presenting Options to Clients
- 21:05 Long-Term Savings vs. Short-Term Costs
- 23:43 Educating First-Time Homebuyers
- 25:48 Wrap-Up + Next Steps
Where to find Joey
Joey Milam — Mortgage Loan Advisor, Alpha Mortgage Advantage
Website: alphamortgage.com
Email: [email protected]
Phone: (910) 250-8888
Facebook: JoeyMilamMortgages
Let’s Talk About Your Next Step
If you’re buying or selling in Wilmington and want to game plan the numbers the smart way, I’m happy to help. Call or text me at 910-983-8963, visit www.makingilmhome.com, or DM me on Instagram @theILMrealtor.
Tabetha Klein | Making ILM Home — REALTOR® • Coldwell Banker Sea Coast Advantage • 910-983-8963 • www.makingilmhome.com • @theILMrealtor
This podcast is for general education and local insight, not lending or financial advice. Loan programs, guidelines, and closing-cost rules vary by lender and situation — always talk with a licensed mortgage professional about your specific scenario. Coldwell Banker Sea Coast Advantage. Each office is independently owned and operated. Equal Housing Opportunity.