I really think that you need the advice of a good real estate attorney now. The regulations regarding seller concessions have changed quite a bit and you need to know exactly what you can and cannot do. It is true that you need 3.5% as a minimum down payment with a FHA loan. Conventional loans require a larger down payment. However, you might qualify for the tax credit that is up to $8,000 which can also help.

It is extremely important that you very carefully look into everything involved in buying a home. If you are not properly prepared and informed, you can make an awful mistake. You'll need an attorney to buy the home so why not find one now and ask about this before you get in trouble?

Seller's concessions are not common but they also are done all the time. The vast majority of sales don't have seller concessions but this doesn't mean they aren't done. Today they must be for the specific cost of the items you need help with so a certain percent or rounded off figure is no longer accurate. Talk to your attorney first and then your banker for the best advice and strategy.

Thanks a lot Kyleen! :) Have a great day!

let me clarify.
The current FHA regulations are as follows.
Borrowers must have a 3.5% down payment,
Seller can contribute up to 6% toward clsoing costs, prepaids, escrows and discount points
This is not uncommon andany experienced agent sohlud not have a problem with tihs

Even with the 6% sellers concession we are still bringing about 2% of the sales price to the table for the additional closing costs.

The strict interpretation of a sellers concession is an amount added to the sale price which is then refunded to the buyer in order to assist in paying the closing costs. At least in New Jersey the amount cannot be greater than the actual closing costs so your 6% seems out of order.
You will not get very far in this market trying to use the concession to pay the down payment. Even the FHA expects you to bring some of your own money to the closing table.

Kyleen,
6% is a considerable amount for a seller to conceed. Especially if your are offering them less than their asking price. Hopefully you are still planning on putting up a decent earnest money deposit to show that you are serious and plan on standing behind your offer. Earnest money deposits are usually at least 1% of the offer price. Earnest money practices may differ depending on local practice. Another thing to consider is your lender's point of view. Depending on the terms of your financing, many lenders will not allow the seller to contribute this much, if any. Make sure you have covered it with the lender first. As far as the real estate agent's point of view, as the listing agent, I usually like to see that the buyer writing the offer has some security to put forth. It makes me, and my sellers, a little nervous if the buyer is completely "cash poor." Not to say that a buyer's agent shouldn't be willing to help you find and buy a home. It's just their job to communicate with you and help you to structure the best offer possible. Good luck, I hope this helps!

As an investor I run into a variation of this from time to time. I politely--but firmly--stand my ground; I explain that we have slightly different goals. Their goal is to sell a property, and my goal is to make some money (by buying the property the right way).

Ask her if she's comfortable working with you and your terms. If not, the she might not be the best agent for you. If that's the case, then you should probably discuss this with her broker. It's possible that you and they might have to go your own separate ways.

We are asking for a 6% sellers concession to help with the down payment/closing costs. It seems like not all agents are comfortable with working with us when we say we want the concession. One real estate agent was actually trying to talk us into "putting a little down just so the seller knows you are really interested and won't back out" She was making us feel like it was not a common thing to ask for and we were not desirable home buyers.

Many buyers are asking for concessions (and they're getting them). I agree with Chris that you don't need a specialist to negotiate your terms.

Kyleen,
Seller's concession is not a very specific term. In the current market, many sellers are making concessions in the way of price and offering misc. incentives such as home warranties, closing costs, repairs, allowences, etc. Most agents out there will be used to negotiating on behalf of their buyer. I don't believe that any agents who would claim to be "specialists" at this. It's part of negotiating and part of an agent's job. Did you have any specific concession in mind?