Buyer offers 208k and appraisal lands at 195k. Now what?

[Glen Holmen]

Hi. I'm flipping a 3/2 starter in Albuquerque, NM and we listed for sale at 189k, got 9 offers (all FHA and all above list) on the first weekend showing, and accepted the high offer at 208k. Now, a month along, the punch list is done, closing is next week, and the appraisal comes in 13k low at 195k. Yes, that was a surprise but likely close to accurate. I want to process the deal but I’d really like 199k.
The buyer’s prequalification letter okays 210k or 202,650 for FHA. 

1) Any regulations or cautions against asking for buyer (if he has it) to bring 4k to closing? 
2) Or? Is is possibly better for the buyer to pay all the (several thousand $ in) closing fees and roll it into his FHA loan? 
I’ve not been down this road and could really use some advice. How would you close it? Help!

Glen