Your Buyers Broker should be helping you with this. Financing should be based on your $136,900 purchase price and the loan amount for which you are approved. Based on an FHA insured loan with 3.5% down payment, your down payment should be $4,791.50 and $132,108.50 should be the amount of your loan, assuming your lender approved you for at least $132,108.50. The seller paid closing costs should be deduced from the seller's proceeds from the sale and credited back to you at closing - assuming you have at least $4,791.50 in closing costs. Your lender should be able to provide details. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
But doing some quick mortgage math makes it seem that your seller is paying 3.5% in closing costs.
Your base loan amount for FHA = $132,108.50 and your minimum investment for FHA loan will be 3.5% or $4791.50; coincidentally the same amount of Closing Costs your seller is paying on your behalf.