{"id":108292,"date":"2025-12-17T11:44:02","date_gmt":"2025-12-17T19:44:02","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=108292"},"modified":"2025-12-17T11:59:45","modified_gmt":"2025-12-17T19:59:45","slug":"how-to-get-closing-costs-waived","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/how-to-get-closing-costs-waived\/","title":{"rendered":"Can Closing Costs Be Waived? 6 Ways Buyers Can Lower Costs at Closing"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Closing costs can add thousands of dollars to the price of buying a home, often catching buyers off guard right before the finish line. Whether you\u2019re browsing <\/span><a href=\"https:\/\/www.redfin.com\/city\/11203\/CA\/Los-Angeles\/homes-for-sale\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">houses for sale in Los Angeles, CA<\/span><\/a><span style=\"font-weight: 400;\"> or exploring <\/span><a href=\"https:\/\/www.redfin.com\/city\/30818\/TX\/Austin\/homes-for-sale\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">homes for sale in Austin, TX<\/span><\/a><span style=\"font-weight: 400;\">, understanding these fees can help you plan for the true cost of buying.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While closing costs usually can\u2019t be completely eliminated, there are legitimate ways to reduce them, shift who pays them, or effectively \u201cwaive\u201d them through credits and assistance programs. In most cases, \u201cwaived\u201d means the costs are covered or offset, not erased entirely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This Redfin article breaks down when closing costs can be waived and the most realistic strategies to lower or avoid paying them upfront.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What are closing costs?<\/span><\/h2>\n<p><a href=\"https:\/\/www.redfin.com\/blog\/what-are-closing-costs\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Closing costs<\/span><\/a><span style=\"font-weight: 400;\"> are the fees and expenses required to finalize a real estate transaction. They typically range from 2% to 5% of the home\u2019s purchase price and are paid at closing. Common closing costs include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loan origination fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appraisal and credit report fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Title insurance and escrow fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attorney or settlement fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepaid taxes and homeowners insurance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recording and transfer fees<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Some of these costs are lender-controlled, some are third-party fees, and others are government-mandated\u2014which affects how flexible they are.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Can closing costs actually be waived?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In most cases, closing costs aren\u2019t truly \u201cwaived\u201d or erased\u2014but they can be covered, reduced, or rolled into other parts of the transaction. When buyers talk about waived closing costs, they usually mean one of the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The seller pays them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The lender covers them through a credit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They\u2019re rolled into the loan balance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A grant or assistance program pays them<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Understanding this distinction is important, because each option changes where the cost shows up\u2014either upfront, over time, or in the purchase price.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">1. Ask the seller to pay closing costs (seller concessions)<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most common ways to reduce or avoid paying closing costs upfront is to negotiate <\/span><a href=\"https:\/\/www.redfin.com\/blog\/seller-concessions-101\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">seller concessions<\/span><\/a><span style=\"font-weight: 400;\">. This strategy shifts some or all of your closing costs to the seller as part of the <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-a-purchase-and-sale-agreement\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">purchase agreement<\/span><\/a><span style=\"font-weight: 400;\">, lowering the amount of cash you need at closing.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How seller concessions works<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The seller agrees to cover certain closing costs on your behalf, which are paid at closing instead of coming out of your pocket. This approach is especially common in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buyer\u2019s markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Homes that have been on the market longer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.redfin.com\/blog\/buying-a-new-construction-home\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">New construction sales<\/span><\/a><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Limits to seller concessions<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most loan programs cap how much the seller can contribute:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Conventional loans:<\/b><span style=\"font-weight: 400;\"> typically up to 3%\u20139%, depending on down payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>FHA loans: <\/b><span style=\"font-weight: 400;\">up to 6%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>VA loans:<\/b><span style=\"font-weight: 400;\"> up to 4% (plus certain allowable fees)<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.redfin.com\/blog\/disadvantages-of-sellers-paying-closing-costs\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Seller concessions<\/span><\/a><span style=\"font-weight: 400;\"> can significantly reduce your cash-to-close, but they\u2019re often offset by a higher purchase price or different negotiation terms.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">2. Use lender credits (higher rate, lower upfront costs)<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Another common way buyers \u201cwaive\u201d closing costs is by using lender credits. Instead of paying all closing costs out of pocket, you trade a slightly higher interest rate for a credit from the lender that covers some or all of your upfront fees.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How lender credits work<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You agree to a higher mortgage rate, and in return, the lender applies a credit toward your closing costs at closing. This reduces the amount of cash you need to bring to the table. This can make sense if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re short on cash upfront<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You plan to refinance or sell within a few years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You value lower cash-to-close over the lowest possible rate<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The trade-off is higher interest costs over time. Because of that, lender credits tend to work best for short-to-medium holding periods rather than long-term homeownership.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">3. Roll closing costs into the loan (when allowed)<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some loan programs allow certain closing costs to be financed into the loan balance rather than paid out of pocket at closing. This approach can lower your upfront cash requirement, but it increases the amount you borrow, and typically your monthly payment. This is more common with:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.redfin.com\/blog\/how-does-a-va-loan-work\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">VA loans<\/span><\/a><span style=\"font-weight: 400;\"> (especially for refinances)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FHA streamline refinances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certain renovation loans<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For standard purchase loans, rolling closing costs into the loan is relatively uncommon and usually requires:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.redfin.com\/what-is-my-home-worth\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">home appraising above the purchase price<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Staying within <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-calculate-home-equity\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">loan-to-value<\/span><\/a><span style=\"font-weight: 400;\"> limits<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While financing closing costs can make buying or refinancing more accessible, it\u2019s important to weigh the higher loan balance and long-term interest costs against the short-term savings at closing.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">4. Use down payment and closing cost assistance programs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many state, local, and nonprofit programs offer grants or forgivable loans that can help cover closing costs, down payments, or both. <\/span><a href=\"https:\/\/www.redfin.com\/guides\/first-time-home-buyer-programs\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">These programs<\/span><\/a><span style=\"font-weight: 400;\"> are designed to make homeownership more accessible and can significantly reduce the amount of cash you need at closing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These programs are often available to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First-time homebuyers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Moderate-income buyers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buyers purchasing in specific areas<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Assistance may cover:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Closing costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Down payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Both<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Some programs require:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Income limits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Homebuyer education courses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Living in the home for a set number of years<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Availability and requirements vary widely by location, so it\u2019s best to ask your lender or real estate agent about <\/span><a href=\"https:\/\/www.redfin.com\/guides\/first-time-home-buyer-programs\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">assistance programs<\/span><\/a><span style=\"font-weight: 400;\"> early in the process, as they can affect timelines and loan eligibility.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">5. Compare lenders and negotiate fees<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not all closing costs are fixed, and many buyers don\u2019t realize they have more <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-negotiate-on-house-price\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">room to negotiate<\/span><\/a><span style=\"font-weight: 400;\"> than they think. Lenders can charge different rates for the same services, and some fees\u2014especially lender-controlled ones\u2014vary widely from one loan estimate to another.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taking the time to compare offers and ask questions can significantly reduce your out-of-pocket costs at closing. You may be able to reduce costs by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Comparing loan estimates from multiple lenders<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Asking lenders to match or beat fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Questioning origination or processing fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shopping for title and escrow services (where allowed)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even small reductions can add up to meaningful savings.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">6. Close at the right time<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The timing of your closing can influence how much cash you need upfront. While it won\u2019t eliminate closing costs entirely, choosing the right closing date can help reduce prepaid expenses\u2014costs that cover interest, taxes, and insurance before your first <\/span><a href=\"https:\/\/www.redfin.com\/mortgage-calculator\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">mortgage payment<\/span><\/a><span style=\"font-weight: 400;\"> is due. You may lower prepaid costs by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Closing later in the month (less prepaid interest)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choosing a time when property taxes or insurance payments are lower<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These timing adjustments won\u2019t remove closing costs, but they can reduce the total amount due at closing and make your <\/span><a href=\"https:\/\/www.redfin.com\/blog\/cash-to-close\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">cash-to-close<\/span><\/a><span style=\"font-weight: 400;\"> more manageable.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What closing costs usually can\u2019t be waived<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While many closing costs can be reduced or shifted to another party, some fees are difficult, or impossible to avoid. These costs are typically set by government agencies or required by lenders and third parties, leaving little room for negotiation. Fees that usually can\u2019t be waived include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government recording fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transfer taxes (where applicable)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Required insurance premiums<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certain third-party charges<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Because these costs are mandatory, most \u201cwaived\u201d closing cost strategies focus on who pays the fees rather than eliminating them altogether.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Is waiving closing costs worth it?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether waiving closing costs makes sense depends on your financial priorities and how long you plan to own the home. While reducing upfront costs can make buying more accessible, it often comes with trade-offs that affect your long-term expenses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Waiving or reducing upfront closing costs can help if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re cash-constrained<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want to preserve savings for repairs or emergencies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You plan to move or refinance within a few years<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Paying closing costs upfront may be better if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want the lowest long-term interest cost<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re buying a long-term home<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can comfortably afford the upfront expense<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Weighing both the short-term cash savings and the long-term cost impact can help you choose the option that best fits your homeownership goals.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Closing costs can add thousands to buying a home. Learn how to get closing costs waived and the most realistic ways buyers reduce or avoid them.<\/p>\n","protected":false},"author":562,"featured_media":83577,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34277],"tags":[34642],"coauthors":[34346],"class_list":["post-108292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-mortgage"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>6 Ways to Get Closing Costs Waived - Redfin<\/title>\n<meta name=\"description\" content=\"Learn how to get closing costs waived and the most realistic ways buyers reduce or avoid them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redfin.com\/blog\/how-to-get-closing-costs-waived\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Closing Costs Be Waived? 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