Seller concessions and PMI

[Nathan Davis]

I took around but couldn't find a conclusive answer. I'm thinking of asking for seller concessions to be applied to PMI/MIP. From what I've read that seems permissible. My question is how that concession is applied to the loan?

Let's say I've got a 400k property and am trying a fha loan with 10% down. I know theres an upfront 1.75 % mip fee ($6300) and monthly mpi ($240). If I ask for concessions of 6% (24k) will the concessions be credited toward the ltv or will it be escrowed to pay the mpi? I know it's a stretch, but it's hypothetical the key here is where do the concessions go.

Thanks