Can I Buy a House with No Cash at Closing? (Seller Concessions Explained)

Buying a Home with No Cash at Closing — Is It Really Possible?

If you’re dreaming of homeownership in Michigan but worried about how much cash you’ll need at closing — you’re not alone. Between the down payment, closing costs, and moving expenses, it can feel like you’ll never save enough.

Here’s the good news: in many cases, you can buy a home in Michigan with little — or even no — cash at closing by using seller concessions and smart loan programs.

At Mortgage Up, we help buyers structure their offers so they can keep more of their savings where they belong — in the bank (or better yet, working for you in other ways).

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What Are Seller Concessions?

Seller concessions are when the seller agrees to pay part (or all) of your closing costs as part of your purchase agreement.

Think of it as the seller helping cover your side of the table so you can get into the home with less upfront cash.

Common costs that can be covered include:

• Title and escrow fees

• Appraisal and underwriting costs

• Prepaid taxes and insurance

• Discount points or temporary rate buydowns

Instead of writing a check for these at closing, the seller’s proceeds from the sale cover them — saving you thousands out of pocket.

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How Seller Concessions Work in Michigan

Let’s say you’re buying a $300,000 home in Grand Rapids. Your total closing costs might be around $9,000.

If your Realtor negotiates 3% in seller concessions, the seller agrees to use up to $9,000 of their proceeds to cover those costs for you.

You still own the home at the same price — but you bring $0 to closing.

💡 Pro Tip: Concessions must be written into the offer upfront and approved by your lender. Different loan types (FHA, Conventional, VA, etc.) have limits on how much sellers can contribute — that’s where having a strategic loan advisor makes all the difference.

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Pair Seller Concessions with Down Payment Assistance

Here’s where it gets even better. In Michigan, there are several down payment assistance (DPA) programs that can cover your initial down payment — so when combined with seller concessions, you can often close with little or no cash required.

For example:

• MSHDA MI Home Loan: Offers up to $10,000 in down payment help

• Local city or county programs (like Grand Rapids or Kalamazoo) may provide additional assistance

• FHA DPA programs can even offer forgivable support after a few years of ownership

When structured correctly, these tools can help you qualify for a true zero-down Michigan home loan.

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When “Zero at Closing” Builds Long-Term Wealth: Marcus’s Story

Let’s look at how one Michigan buyer used this exact strategy.

Marcus was a renter with big goals — he didn’t just want to buy a home; he wanted to start building wealth through real estate. He found a duplex that checked every box: one unit to live in, one to rent out.

Because Marcus purchased the duplex as an owner-occupied property, the rental income from the second unit helps offset his monthly mortgage costs.

Here’s the smart part:

• Marcus used an FHA down payment assistance program to cover his down payment.

• The seller paid his closing costs through negotiated seller concessions.

• That meant he brought virtually no cash to closing — and he didn’t have to dip into his retirement savings or sell investments.

Marcus is now a homeowner and a landlord. Even though the property doesn’t produce large monthly cash flow right now, he’s steadily building equity while collecting rent to help pay down his mortgage. Over time, his cash-on-cash return has the potential to outpace that of a traditional investor who put 20% down, because his initial investment was much smaller — allowing him to build equity and appreciation with less money tied up.

And when he’s ready to move into his dream single-family home, he’ll qualify as a repeat buyer — potentially using a conventional loan with as little as 5% down.

This is what we mean when we say “creative, low-cash homebuying.” It’s not just about getting the keys — it’s about setting yourself up for financial growth.

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When “Zero at Closing” Makes the Most Sense

Seller concessions can be a smart move if you:

• Have strong income but limited liquid savings. You may have assets tied up in retirement or investments and prefer to keep them growing rather than cashing out.

• Want to use your available savings strategically. Instead of draining funds for closing costs, you might use that money to pay down high-interest debt like credit cards or car loans — improving your long-term financial position.

• Are buying in a buyer-friendly market or working with a motivated seller. Negotiating seller-paid costs can strengthen your offer without increasing your out-of-pocket expenses.

• Prefer to keep cash reserves for flexibility. Whether it’s for home updates, moving costs, or an emergency cushion, having savings on hand gives you breathing room as a new homeowner.

Even well-qualified buyers can benefit from a “zero at closing” structure — it’s about using your money smarter, not stretching it thinner.

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What to Do Next

At Mortgage Up, we specialize in creative, low-cash homebuying strategies for Michigan buyers — from Grand Rapids to Kalamazoo and beyond.

We’ll help you:

• Identify programs that reduce your cash-to-close

• Structure offers that win acceptance with seller concessions

• Simplify your approval process from start to finish

👉 Let’s structure your offer right — contact Mortgage Up today.

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FAQs

Can seller concessions cover my entire down payment?

No — concessions can only go toward closing costs or prepaid expenses. Down payments must come from your own funds or an approved assistance program.

Do seller concessions affect my home price?

Sometimes. Sellers may raise the price slightly to offset concessions, but it’s often still worth it for buyers who need to preserve cash.

Are seller concessions common in Michigan?

Yes — especially in areas where homes aren’t selling above list price. Skilled Realtors and lenders can help negotiate them effectively.