Generally, you are incorrect! A borrower under the correct circumstance can put down as little as 3%. The problem with the conversation chain is that the Seller meant to say the buyer wanted to make the purchase price $300K and get a $50K concession toward credit costs. THAT could never happen because the closing costs on that low of a price could never reach $50K. They were probably asking for a seller second mortgage or to get money back post closing both of which are not allowed.
