Can the seller pay my closing costs, and how much are they allowed to contribute?

Yes, sellers can contribute toward your closing costs through what are called seller concessions, but each loan type caps how much. Conventional loans generally allow 3% of the price with less than 10% down, rising to 6% with 10% to 25% down. FHA allows up to 6%, VA allows up to 4% plus normal closing costs, and USDA allows up to 6%. Concessions can only cover closing costs and prepaids, not your down payment, and cannot exceed your actual costs. In a buyer's market, asking for concessions is often smarter than negotiating price down, because it lowers the cash you need at the table. Have your agent build the concession into your offer.