FHA Closing Costs

Posted on January 2, 2009
Filed Under FHA Home Loans, Home Loans | 1 Comment

FHA has what are called:  Allowable Closing Costs and Non-Allowable Closing Costs.

In the past before January 27th, 2006 there was a big difference as to which closing costs a borrower could not pay.   But, that has changed to make the program more in line with conventional mortgages.

Most fees that a borrower would see on a Good Faith Estimate can now be charged to the borrower accept for the Tax Service Fee which is still considered a non-allowable closing cost.   Therefore it would be typical for a borrower to pay for title insurance, escrow fees, processing fee, 1% loan origination, recording fee, notary, underwriting, doc prep, courier fees, pre-paid insurance and taxes and perhaps other misc. fees standard to the local area of the property.

Keep in mind that the seller is allowed to credit up to 6% of the purchase price towards closing costs which can certainly reduce the amount of funds the borrower would need to bring to closing.


One Response to “FHA Closing Costs”

  1. FHA Credit Guidelines | Vancouver Washington Real Estate Information on January 2nd, 2009 11:27 pm

    […] FHA Closing Costs […]

Leave a Reply

You must be logged in to post a comment.