In a purchase market, it is not uncommon for a seller to pay part or all of a buyer's closing costs. This is partially dictated by the loan product. For example, Conventional loans with 5% down only allow the seller to pay up 3% of the sales price towards closing costs. If the costs exceed that, it will be the responsiblility of the borrower to pay the difference. The USDA Home Loan allows the seller to pay up to 6% of the borrower's closing costs and prepaids.  This is a great feature, especially since the borrower does not have to put any money down on this loan type. Additionally, this practice is often necessary for borrowers in rural communities because coming up with a down payment and closing costs can be challenging. Without this loan program, individuals in rural areas would be excluded from the home buying process.This is another reason why USDA Loans are so popular today.