If closing costs are paid by the seller do I need a bigger loan?

I have a 60K FHA loan and the closing costs total 9K on the good faith estimate, if the seller covers the closing costs I heard this causes the loan amount to increase. Although I am approved for 60K the GFE says I am only borrowing a little over 50K. If the 9K in closing is added to this I'm back at 60K but if it is 60K plus the closing I'm outta luck. Can someone help.