First, be careful in your seller's credit in that FHA only allows up to 6% of the sales price. As for the FHA funding fee, it is considered a cost of doing an FHA loan and it is possible to pay for it where as they do not finance the amount into the loan. Also buying down your rate with discount points is also feasible. As mentioned, just keep in mind that your closing costs do not exceed the seller's concession of 6%. If you have any questions, you always reach me directly as well. We are a direct lender.