In Georgia, closing costs are technically the buyer’s responsibility. In practice they are negotiable, and it is common for a seller to cover part or all of them as part of the deal. How much a seller is allowed to contribute depends on the loan program, not on how good a negotiator anyone is.
The down payment is different. That money has to come from you.
What closing costs actually include
Closing costs are not one fee. They are everything every party charges to move the property from one owner to the next:
- What the lender charges — origination, underwriting, processing
- The closing attorney’s fee, which in Georgia handles the closing
- Title search and title insurance
- Transfer and recording fees paid to the county
- The appraisal
- A full year of homeowner’s insurance, paid in advance
- Property taxes, paid in advance into escrow
- Discount points, if you are buying the rate down
Individually none of them looks large. Together they add up, which is why the total surprises buyers who only budgeted for the down payment.
How much are closing costs in Georgia?
Most buyers should plan on 2% to 4% of the purchase price. On a $350,000 home that is roughly $7,000 to $14,000.
That number can reach 6% or more if you are buying discount points to lower your interest rate. Points are not a cost you are forced to absorb — they are a choice to pay more at closing in exchange for a lower payment every month for as long as you own the home. Whether that trade is worth it depends on how long you plan to stay.
Can the seller pay the buyer’s closing costs?
Yes, and it happens routinely. A seller contribution toward closing costs is a standard term of a purchase contract in Georgia.
What it is not is automatic. It is a term that has to be asked for and agreed to, and it comes out of what the seller nets — which means it competes with price. An offer structured to get concessions is usually structured differently from an offer written to win on price alone.
This is where representation earns its keep. Knowing the limit, knowing how much you actually need, and knowing how to build an offer a seller will accept anyway is the difference between the home you wanted and the home you settled for.
How much is a seller allowed to contribute?
Every loan program caps it, and on a conventional loan the cap moves with your down payment. The more you put down, the more help you are allowed to receive.
| Loan type | Maximum seller contribution |
|---|---|
| Conventional, less than 10% down | 3% |
| Conventional, 10% to 25% down | 6% |
| Conventional, more than 25% down | 9% |
| FHA | 6% |
| VA | 4% in concessions |
| USDA | 6% |
Program limits are set by the agencies and change. Confirm the current figure with your lender before writing an offer.
Why first-time buyers and repeat buyers get different answers
The two situations are almost opposites, and the rule surprises people both times.
A first-time buyer usually arrives with the smallest down payment they can manage — 3% or 5% conventional, or 3.5% on FHA. That is exactly the tier where the conventional cap sits at its lowest: 3%. On a $350,000 home that is $10,500, which may not cover the full closing costs. FHA at 6% is often the better structure for that buyer, and the reason has nothing to do with credit.
Someone who just sold a house is in the opposite position. They come to the table with equity, put 15% or 20% down, and the ceiling jumps to 6% — on a $350,000 home, $21,000 instead of $10,500. Twice the room to negotiate, available to the buyer who needs it least.
There is a threshold worth knowing about. A conventional buyer moving from 5% down to 10% down doubles what a seller is allowed to contribute. Depending on the price, the extra help can be worth more than the additional cash you put in — the same money, moved to a different place, does more work.
That calculation is specific to your numbers and your program. It is also the kind of thing nobody runs unless someone thinks to run it.
What has to come from you no matter what
The down payment. A seller cannot fund it, and no contribution counts toward it.
It can come from your own savings, from a documented gift, from the proceeds of a sale, or from certain retirement withdrawals — but not from the other side of the transaction. Closing costs are the flexible part. The down payment is not.
What this means for you
Before you fall in love with a house, know three numbers: what you have, what your program requires as a down payment, and what your program allows a seller to contribute.
Those three decide how much house you can actually write an offer on — which is usually more than a buyer assumes, and occasionally less. Either way it is better to know before the offer than during it.