Credits for Closing Costs on a purchase contract should just be for “Closing Costs”, and not for only “Non-recurring Closing Costs.” Very few lenders restrict-seller credits to only “Non-recurring Costs” these days. There is no reason to restrict credits to only non-recurring costs; it just requires the buyer to bring in more money.
In addition, if a borrower or buyer is “cash tight,” requests for seller credits should be very aggressive (ask for a lot). If the credit ends up exceeding the actual closing costs, we can charge “extra fees” to use up the entire credit, and refund those fees after close of escrow.
Our cash-tight buyers love these post-close rebates for repairs, move-in costs, etc. Many of our Realtors purposely ask for excessively large credits so their buyers can get refunds at close.