Your agent needs to know what loan would work best for you and how you can utilize the sellers contribution to your closing costs. Different loans have different guidelines on how much a seller can contribute to a buyers closing costs.

In the case of a USDA loan a buyer can get as much as 6% of the sales price in sellers contributions that can be used toward closing costs, prepaid expenses, discount points, and other closing costs. You could potentially get into a home with paying nothing out of pocket

On a VA loan the seller may contribute up to 4% of the sale price, plus reasonable and customary loan costs. Because he VA loan contribution can include additional reasonable and customary loan costs the actual amount is calculated a bit differently and it would be best to talk to your lender on how much of a contribution you could actually get

 While an FHA loan requires a 3.5% down payment to the loan, a buyer can get as much as 6% of the sales price in sellers contributions that can be used toward closing costs, prepaid expenses, discount points, and other closing costs.

The conventional loan has more of a sliding scale used for seller contributions. If you are putting less than 10% down on the home the maximum seller contribution is 3%. A buyer putting 10 to 25% down can receive as much as a 6% seller contribution, while a buyer putting down 25% or more may get as much as 9%.

So what do you do if you are getting $9,000 in closing costs but you actual closing costs are only $6,500? If you don't use it you LOSE it! You as the buyer don't get to pocket that money, it would go back to the seller's bottom line. What can you do to use that money? Talk to your lender, see how much it would cost to pay down your mortgage rate, or perhaps pay the funding fee for a USDA, VA or FHA loan? Each program is different on how that extra contribution can be applied so talk to your agent and lender!