Question about FHA Loan Guidelines?

I’m getting a FHA loan. As a condition of me buying the house the seller says they will credit me ,000. According to the loan guy, under FHA guidelines the seller can’t just cut me a check for the amount. It would either have to come into play by reducing the loan amount by 00 and thus lowering my monthly obligation or giving the ,000 to the mortgage company and they can lower the interest rate to make my monthly obligation lower.

Can anyone confirm this?
One thing to add:

Seller is already paying closing costs.


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