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Did You Know?

FHA Closing Costs are paid at or before the time of closing. Mortgage disclosures describe all closing costs incurred by the buyer, seller, and lender.

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Closing Costs for FHA Loans

FHA Closing Costs

Closing costs encompass all the fees and charges owed at the closing of a mortgage. The FHA outlines "allowable" closing costs that may be reasonably charged to the borrower. The non-allowable costs are paid by either the seller or lender. Some closing costs are charged by the mortgage lenders, and others come from third parties such as home appraisers and title companies.

Closing Costs You Can Expect

The usual closing costs include appraisal fees, inspection fees, cost of credit reports, lender's origination fees, deposit verification fees, home inspection fees, cost of title examination and title insurance, document preparation charges, property surveys, attorney's fees, recording fees, and the cost of transfer stamps and taxes, to name a few.

According to the Federal Reserve, FHA closing costs typically amount to an average of 3% of the property’s purchase price, but this number can change based on location, as some states charge higher taxes. Depending on where you choose to buy a home, your closing costs can amount to as much as 6% of the purchase price.

In addition to location, a borrower’s choices can affect the amount they pay at closing. For instance, a borrower may choose to pay discount points to lower their interest rate. But this also means they increase their overall closing costs. This decision is ultimately made according to what the borrower can afford. Some find it easier to make higher upfront payments and lower the overall interest they pay on the loan. Others have less disposable income and choose to keep their closing costs low by foregoing the discount points and lower interest rate.

Loan Estimate and Closing Disclosure

It’s difficult to come up with an average number for FHA closing costs. That’s why the Consumer Financial Protection Bureau (CFPB) implemented the "Know Before You Owe" mortgage disclosure rule. It mandates that all lenders give borrowers a Loan Estimate of their FHA closing costs shortly after they apply for a loan. This document goes over the ins and outs of the mortgage terms, allowing borrowers to easily compare the mortgage costs with that of the competition. Lenders are then required to give borrowers the Closing Disclosure three days before closing. This is an updated document that shows what your actual costs will be.

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About the One-Time Close Constuction Loan
Closing Costs include all the fees and charges owed at the closing of a mortgage, including appraisal fees, inspection fees, cost of credit reports, lender's origination fees, and more.
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FHA Loan Articles

What Kind of Home Loan Works for Me?

Once you’ve decided that you’ll be purchasing a home, one of the first questions you need to ask yourself is what kind of mortgage you’ll be using to finance it. When it comes to shopping for a home loan, there are a number of options to consider.

How Much Do I Need to Put Down on a House

A down payment is an upfront installment or part of a larger amount paid on a purchase. The remainder is paid off in separate installments, usually with interest, as part of a loan. The down payment represents your initial ownership stake in the home you continue to make payments on.

First-Time Homebuyers and the FHA Loan Requirements

For many first-time home buyers, the FHA loan is a popular option. With its lenient credit and income requirements, it appeals to young borrowers who don’t have an extensive credit history, or enough money saved up for a down payment.

Things to Know About Making an FHA Loan Down Payment

Many first-time homebuyers need some help understanding and navigating the ins and outs of the mortgage process, and down payments are an essential part of that. A down payment is an upfront installment made on a large purchase while the remainder is paid off with a loan.

The FHA Streamline Refinance Mortgage

The FHA Streamline Refinance allows mortgage holders to refinance their home loan without going through the process of second appraisal. Since this is a step that was completed with the first FHA mortgage, the FHA waives it for the refinance

Benefits of an FHA Loan

Making the decision to buy a house is a big one, followed by the choice of which house to buy. The next biggest decision you make is going to be the type of home loan you need to go through with the purchase. One option for financing your home is an FHA loan.


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