It would be a good idea to ask your questions directly to the lender you plan to use. There seems to be a lot of variation from one institution to another, especially if there are any special circumstances. It doesn't surprise me that you have seen more than one answer to your question.
Unfortunately it sounds like you are not getting straight answers. FHA loans allows a max 6% seller concession while conventional loans sellers assist max is 3%. Call me if you would like a good faith estimate. I'd be happy to assist.
Jeremy S. Hill, Mortgage Consultant
Aurora Financial Group, Inc
I would have to agree with Eileen on this one, I would certainly speak with your lender. However, with so much money down, I tend to steer my clients away from a seller assist. Dealing with many first-time buyers, I found that buyers do not really understand that with the seller assist you are actually financing the amount of the assist over the length of the loan. On a $100,000 loan, that comes to over $27 per month for thirty years (almost $10,000 for a $6,000 seller assist). Even if you have to pay PMI for a short period (until you have 20% equity in the home), you will probably not be paying anywhere close to that amount. If you do decide to pay PMI, please be sure to check with your lender on their regulations for terminating the PMI.
Denise Brown, Realtor
I'm amazed at the different answers you're getting here. This is a Fannie Mae guideline...with that said, some lenders have underwriting overlays in addition to conforming guidelines.
If your closing costs are less than 6% of the sales price, then you will not be able to use the entire 6% (unless your LO uses the 6% to buy the rate down).