VA is 4%, Conventional at 5% down is up to 3% CC, 10% down or more is up to 6% CC, FHA up to 6%, and USDA is up to 6%.
That is correct that the home must appraise with the sales price plus the CC. However, there really isn't anything to worry about as a seller. If it doesn't appraise then just have it in writing per the contract that the CC will be lessened, not the sales price. If it closes and there's any CC left on the table then it goes back in the seller's pocket.
Texas Realtor... However, these are government loans so the down payment and Closing Cost percentage is the same throughout the country. :)