FHA Closing Costs
FHA Allowable Costs Charged to the Borrower
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.
First-time homebuyers considering an FHA home loan have plenty of questions, including one of the all-time most popular early inquiries: “How much can I borrow?” If you have done some Internet research on FHA loan limits in the past, check again—some reports are now out of date because of recent changes to the rules for FHA lending limits.
FHA-insured mortgages and mortgage insurance requirements can be confusing, but the facts are simple. FHA home loans aren’t any more difficult to understand than a conventional loan. You just need to learn the lending vocabulary.
When you decide to apply for an FHA Refinance loan, there are several questions you’ll need to answer to set the approval process in motion. Some questions are about planning issues, others are directly related to whether or not an FHA Refinance loan is for you.
