i got pre approved for a fha loan about a week ago,from a lender.the qoute pretty much shows all the money i need- estemated total cash investment,is $500.it ahows pretty much every thing like closing ect.. in the loan.it says down payment 2.25% .it also says down payment source-gift fund provider-reimbursed by seller.the other question is this -
The down payment of 2.25% comes from a down payment assistance provider who is repaid by the seller. This is a common practice with FHA loans. The property must appraise though for an amount equal to the amount the seller is receiving plus the cost of the down payment assistance and buyer's settlement charges added into the sales price .the anser i geuss im looking for is how dose this work.sorry for the typos.

Sounds like you are going to have to tack on the amount of down payment and closing costs to the amount of the purchase price. You don't say how much the settlement is, but let's guess it's 3%. If you purchase a house for $100,000, then add another $3000 for closing costs and another $2,250 for down payment, then the purchase price for your $100,000 house is now $105,250, but the seller is still getting $100,000. The house will have to appraise for $105,250. This is just a convoluted way of you borrowing your closing costs and down payment.

sounds like you are doing an fha nehemiah no money down gift program,on these you just have to make sure the house will still appraise with all the costs rolled in.Fha has recently relaxed alot of there old rules because they were getting pounded and losing alot of money to private sub-prime lenders with less red tape and requirements to qualify.

thank you for tour reply.but how do i go about doing this? do i tell the apprasor to add this or what.also can i still negosiate the price.

Your biggest problem will probably be finding a Seller willing to accept such a program. In my are they are generally never accepted. Sellers don't like them and most agents hate them.

I don't think you can tell the appraiser what to put on the appraisal. Appraisers are supposed to show market value irregardless of what the home is selling for (if he is doing his job correctly).You can try to negotiate if you like, you can try anything, but most of the time the seller isn't going to work with this kind of program if he isn't getting top dollar. In addition to this, there will probably be a repair list (I have never seen one without it). These repairs have to be done before closing, so it must be determined who is going to perform or pay for repairs. I hope you have a good agent that is experienced in this type of loan. I am working on one right now. The home went for full price plus the closing costs, and luckily it did appraise. The buyer did some of the repairs, and the seller paid for part of them.