with Joey Milam, Alpha Mortgage Advantage
Seller paid closing costs in Wilmington NC are the single most underused tool I see with first-time buyers. People spend months scraping together a down payment, get to the finish line, find out closing costs are a whole separate pile of money — and never once ask whether the seller could cover some of it. In Episode 005, Joey Milam of Alpha Mortgage Advantage and I get into exactly how it works and how to ask without torching your offer.
Hey friend — I’m Tabetha (Tabi) Klein, a REALTOR® in Wilmington, North Carolina, serving New Hanover, Brunswick, and Pender counties. This podcast exists to make the home buying process feel less like a pop quiz.
Watch or listen: YouTube · Spotify · @theILMrealtor
In this episode
Ask your lender one question before you write an offer: ‘What’s my maximum allowable seller contribution on this loan?’
Tabi Klein, host
How seller paid closing costs in Wilmington NC actually work
When you buy a house you’re really writing two checks. One is the down payment. The other is closing costs — lender fees, the appraisal, title work, attorney fees, recording fees, and the prepaid stuff like homeowners insurance and property taxes that gets collected up front.
A seller credit — also called a seller concession — is when the seller agrees to put money toward that second pile. It is written into the contract. It is not a handshake, not a favor, and not something your agent can arrange after the fact. The money doesn’t come to you as cash; it’s applied at the closing table to costs you would otherwise pay. The CFPB’s breakdown of closing costs and who pays them is a good neutral list of what’s actually in that pile.
What seller credits can and can’t be used for
Generally, credits go toward closing costs and prepaids. Where buyers get creative — and where Joey is genuinely good — is using a credit for a rate buydown instead of just knocking the cash costs down.
That distinction matters more than people realize. A credit spent on closing costs helps you once, on closing day. A credit spent buying down your interest rate helps you every month for as long as you keep the loan. For a lot of buyers, the second one is worth dramatically more — and almost nobody asks about it.
What a credit generally can’t do: come back to you as cash at closing, or cover your down payment. That’s the line, and lenders hold it firmly.
The limit on seller paid closing costs that changes everything
Here’s the part that surprises people: there’s a cap, and it isn’t set by the seller or by you. It’s set by your loan program.
Conventional, FHA, VA, and USDA loans each allow a different maximum seller contribution, and on a conventional loan the cap also moves depending on how much you’re putting down — a bigger down payment generally allows a bigger credit. Across the common programs the ceiling typically lands somewhere in the low single digits to high single digits as a percentage of the purchase price.
I’m deliberately not printing a table of percentages here, because these caps get adjusted and the number that matters is yours. Ask your lender one question before you write an offer: “What’s my maximum allowable seller contribution on this loan?” If you negotiate a credit above your cap, the excess doesn’t roll over or get refunded — it’s simply lost, and you gave up negotiating room for nothing.
How to ask without losing the house
This is the fear, and it’s a fair one. Here’s how I actually think about it.
- A seller reads the bottom line, not the structure. Offering list price with a $10,000 credit and offering $10,000 under list often land in a similar place for them — but the first one keeps cash in your pocket on closing day.
- Read the days on market. A listing that went live Thursday and has three offers is not the moment. A listing that’s been sitting six weeks is a very different conversation.
- Ask for a number, not a vibe. “Seller to contribute $8,000 toward buyer’s closing costs” is clean. “Seller to help with costs” invites a fight later.
- Make the rest of your offer easy. If you’re asking for a credit, be flexible on the closing date, keep your due diligence period reasonable, and don’t nickel-and-dime the repair list too.
- Know your cap before you write. See above. Asking for more than your loan allows makes you look unprepared.
If you’re a first-time buyer, read this part twice
Joey’s favorite part of the job is making a loan work for someone who’s been told they can’t buy. A seller credit is frequently the thing that does it — not because it makes the house cheaper, but because it solves the cash-to-close problem that stops people at the last hurdle.
So before you decide you need another six months of saving, have the conversation. Get properly pre-approved first so you know your real numbers — my post on pre-approved vs. pre-qualified in Wilmington NC explains why that difference matters, and Episode 007 with Heath Altman covers what your lender is going to ask you for. There’s more in my first-time homebuyer guide for Wilmington too.
Questions buyers ask about seller credits
How much can a seller contribute toward my closing costs?
There is a cap and it is set by your loan program, not by you or the seller — and on conventional loans it also shifts with your down payment. Ask your lender for your specific maximum before you write an offer.
Can a seller credit cover my down payment?
Generally no. Credits go toward closing costs and prepaids, not the down payment, and they do not come back to you as cash at closing.
Will asking for seller paid closing costs in Wilmington NC hurt my offer?
It can, in a multiple-offer situation. But sellers largely read the bottom line, so list price with a credit often lands similarly to a lower price with no credit — while keeping cash in your pocket.
About our guest: Joey Milam (Alpha Mortgage Advantage)
Joey Milam is a Mortgage Loan Advisor with Alpha Mortgage Advantage and a lifelong Wilmingtonian — Laney High School, then UNCW. He’s been in the mortgage business for roughly twenty years, has been Alpha Mortgage’s highest-producing loan officer for five years running, and ranks among the top producing loan officers in southeastern North Carolina. He’s a licensed Mortgage Loan Officer, a VA Loan Specialist, and a licensed real estate agent, and he’s known for solving the loan scenarios other people give up on. Outside work: good bourbon, cars, and a Great Dane named Luna.
Website: alphamortgage.com
Facebook: Joey Milam Mortgages
Want to know what you can actually offer?
If you’re getting close to writing an offer in Wilmington and you want someone to walk through the structure with you — price, credit, rate buydown, all of it — call or text me at 910-983-8963. Or start with my guide to buying a home in Wilmington, NC and come find me when you’re ready.
Tabetha Klein, REALTOR® | Coldwell Banker Sea Coast Advantage | 910-983-8963 | makingilmhome.com | @theILMrealtor
This episode is for general education, not lending, legal, or tax advice. Loan programs, contribution limits, and rates change and vary by borrower — always confirm your specific numbers with a licensed lender. Guest appearances are editorial and are not paid endorsements. Coldwell Banker Sea Coast Advantage. Each office is independently owned and operated. Equal Housing Opportunity.