Can a seller credit be used to pay off the buyer’s debt so that they qualify for a mortgage loan? In markets where seller credits are normal, you may wonder how these credits can be applied to help you buy a home. For conventional or FHA loans, you can use seller credits to pay for closing costs, prepaid expenses, or even points to lower your rate. However, you cannot use them to pay down your debt to qualify for a loan. There is one exception to this, however, and that is a VA loan for Veterans. For VA loans, the credit from the seller can be used to pay off borrower debt to qualify. If you are thinking about buying a home, let’s talk!