buying first home

[N/A N/A]

I have a question about a house I'd like to purchase. They are asking $105,000. I have two options on financing. I chose FHA because the interest rate is much lower and my payments would be managable. But...I need the seller to cover closing costs, and that would mean I'd be asking for up to 6% from the seller. 3% for closing, and another 3% for FHA...don't really understand it all, but that's how it works. The house needs some repairs in the basement...the foundation may have issues. I won't know until the inspection. But I love the house otherwise. It's beautiful. I'm wondering what is a reasonable offer. I'd like to actually offer lower than he is asking, even though I need to also ask for closing. Is this unreasonable? I've heard of people asking up to $10,000 less and getting it.