FHA Closing Costs

The FHA defines allowable closing costs that may be charged to the borrower. These costs are determined as reasonable and customary by each local FHA office.

All other costs in the transaction are considered non-allowable and generally paid by the seller when purchasing a new home or by the lender when refinancing your current FHA mortgage.

• The appraisal fee and any inspection fees
• Actual cost of credit reports
• Lender's origination fee
• Deposit verification fees
• Home inspection service fees up to $200
• Cost of title examination and title insurance
• Document preparation (by a third party not controlled by the lender)
• Property survey
• Attorney's fees
• Recording fees, transfer stamps and taxes
• Test and certification fees, water tests, etc.

Allowable in a refinance: courier fees, wire transfer fees, fees to payoff bills, reconveyance fees.

In the wake of the Gulf oil spill crisis, many mortgage companies are waiving late payment penalties and credit reporting for home owners affected. Did you know that some VA lenders are also offering help for vets affected by the crisis? VA loans are designed to help eligible current and former military members get affordable housing. A VA loan often offers more lenient underwriting terms than many conventional loans, but qualified applicants do have restrictions on the uses of a VA home loan. The first thing you learn as a new FHA mortgage borrower is that you can't apply for an FHA loan at just any bank. The FHA must approve lenders to offer FHA loans, FHA refinancing and homeowner bailout programs.