Seller credit with 3k left over

[Page Huyette]

See my other post today for more history on this property, but my offer was accepted with 4k credit from seller towards closing and pre-paids. I'm receiving a bank credit for accepting a certain rate. This is an fha loan with the required 3.5% down by buyer, but taking that out of the equation, the Hud-1 shows I only need to come in with just over 4k instead of the over 9k I'm required to provide.

My question is--should I ask the seller to agree to a purchase price change. They'll still be getting full asking price, but this would lower my loan amount and slightly lower my required 3.5%.

I've asked the loan officer if any outstanding funds could be applied forward towards interest but was told no, I just lose that money. Seems like there's gotta be a way to make this a tighter deal without the bank gaining 3k+ from my price.