Seller Concessions and Rate Buydowns in San Antonio (2026)

By Chris Dudley, San Antonio REALTOR® and founder of Legacy Realty Group, brokered by Real Broker, LLC (TREC #731381)

Short answer

In fall 2026, San Antonio buyers have room to ask sellers to help with closing costs or an interest-rate buydown. The San Antonio Board of REALTORS® reported about six months of inventory in September 2026, a median price just under $302,000 (down about 2% from a year earlier) and an average time to sell approaching three months (Texas Public Radio, Oct 16, 2026). How much a seller can contribute depends on the buyer's loan type, and that limit is the first thing to check before writing an offer.

What is a seller concession?

A seller concession is money the seller agrees to put toward the buyer's costs at closing: lender fees, title charges, prepaid taxes and insurance, or points to lower the interest rate. In Texas it is written into the sales contract, and the lender has to approve it. A concession can't pay the buyer's down payment, and any amount above the loan's limit is usually lost or treated as a price reduction.

Concession limits by loan type

Loan type Typical seller contribution limit
Conventional, primary home, under 10% down 3% of the price
Conventional, primary home, 10% to 25% down 6%
Conventional, primary home, more than 25% down 9%
Conventional, investment property 2%
FHA 6% of the price or appraised value, whichever is lower
VA Normal closing costs, plus up to 4% for items such as the VA funding fee and prepaid taxes and insurance
USDA 6%

Source: MortgageResearch.com, interested party contribution limits (checked Oct 29, 2026). Your lender's guidelines are the final word, so confirm with your loan officer before you write the offer.

Closing-cost credit or rate buydown?

  • Closing-cost credit: reduces the cash you bring to closing. Best when cash is tight.
  • Temporary buydown (for example a 2-1 buydown): seller money held in an account lowers your payment for the first two years (two percentage points below the note rate in year one, one point in year two). You still qualify at the full rate, and the payment rises in year three.
  • Permanent buydown (discount points): lowers the rate for the life of the loan. It makes the most sense if you plan to keep the loan for years.

Ask your lender to show all three side by side for the same dollar amount. The right choice depends on how long you'll keep the home and the loan.

For sellers: when offering a concession makes sense

With about six months of inventory, many San Antonio buyers are comparing several similar homes. A concession can be easier to approve than a price cut, because it targets the buyer's monthly payment or cash to close, which matters when you're competing with new construction in areas like Alamo Ranch, Cibolo, Schertz and New Braunfels. A price reduction lowers the number future buyers and appraisers see, while a concession doesn't. The right move depends on your home's competition, your days on market and your net. I'll run both scenarios for you.

How I handle it

  • For buyers: I check your loan's limit with your lender first, then write a concession request the listing agent can say yes to.
  • For sellers: I compare a concession against a price reduction using current active and recently sold homes near you, so you can see your net either way.

Related guides

Next step

Buying or selling in San Antonio, Alamo Ranch, Stone Oak, Cibolo, Schertz, Boerne or New Braunfels? Call or text Chris Dudley at (210) 838-6099. Chris Dudley, San Antonio REALTOR® | Legacy Realty Group, brokered by Real Broker, LLC | TREC #731381.