Over asking to cover closing cost FHA loan

[Danielle Duffy]

thoughts?

Quick question: I have the funds to cover the 3.5% FHA required down payment.
I would like to put in an offer on a home asking is 172,600.
Offer 180,000.
Seller pays up to 7,400 Closing cost (bank fees, etc + prepaid)

Understand that home will need to appraiser for 180k.
Will the bank and/or title company understand the contract as such?
Meaning, do I need to inform the bank of the transaction/settlement or kickback toward closing of 7,400?
Also what happens to any overage of the 7,400? Seller keeps it?
Is this something that is done??

Thank you for any advice in advance.