Genesis
Ok I will elaborate.
These companies get funds from investors to use. They charge a processing fee to fund the non-profit. Usually 300-400 or as high as 1% in some cases. They wire the money to title at closing then take it back. it is a paper transaction and the seller is conceeding that money since they take it back. You can conceed 3% for down payment assistance plus 6% for seller concessions.
See FHA 101 for more information
Fha 101