A seller credit is when a seller provides you funds towards your closing costs or a price reduction in lieu of doing repairs you requested. A seller credit can be structured in many ways:
Price reduction.
Contribution to your closing costs. This means the seller will contribute funds towards your loan costs, so you have more money in your pocket at closing.
Seller deposits funds in an account held by the title company at closing. This means the title company holds the seller funds in escrow until work is completed. Once the work is completed, the funds are released to the home service professionals who completed the work.