FHA Loan Down Payment and Closing Cost Assistance

The real estate agent and the lender are permitted to help the buyer out in an FHA loan. However, they may only help the buyer out with his or her closing costs. In that regard, the FHA handbook reads:

Seller Contributions. The seller (or other interested third parties such as real estate agents, builders, developers, etc., or a combination of parties) may contribute up to six percent of the property's sales price toward the buyer's actual closing costs, prepaid expenses, discount points, and other financing concessions.

However, the FHA handbook also provides that such contributions may not be counted towards the buyer's minimum required investment.