This recent headline published by a mainstream and well-known media source is false.
(Not allowed on conventional, FHA, VA, USDA, or non-prime loans.)
The down payment may come from the buyer, as gift money from a close family member, or from an acceptable down payment assistance program.
The seller is allowed to pay for closing costs only, never down payment on the loan.
When you are researching information on home buying and getting a mortgage, don’t believe everything you read online. There is a lot of incorrect information out there.
Article writers who have not worked in the mortgage industry are not good sources of information.
And to make a bad situation worse, articles like this get passed around, copied, and then when people see it multiple times, they believe it.
Be smart: get your information straight from your mortgage broker. That way, you will know it is true and accurate.