FHA Closing Costs

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Are FHA closing costs fixed? Are closing costs normally prepaid or rolled into the loan?

sara · Posted: Tue Mar 18, 2008 4:38 am Post subject: RE: FHA loan closing costs

Hi Gabe,

The closing costs in general range from 3-6% of the loan amount. For FHA loans, it's around the same percentage, though it allows for seller concessions.

The closing costs can be rolled into the loan. But it will require you to pay a slightly higher rate compared to what you can get if you pay the closing costs yourself. Regarding prepaids, there are certain items which require to be paid prior to closing.

Take Care

gmakerley · Posted: Tue Mar 18, 2008 6:34 am Post subject:

there are some fees that are charged on conforming loans that are not allowed on fha loans.

banker0679 · Posted: Tue Mar 18, 2008 9:01 am Post subject:

On a FHA refinance you can roll everything into the loan, and go up to 97.75% LTV Rate/term. If you're taking out cash then it's up to 95%.
The closing costs are calculated in this percentage.

There is a FHA funding fee 1.5% that is charged on all 30yr fixed fha mortgages. On a purchase you can roll it into the loan. With a purchase you will need the seller to pay all of your closing costs. This is how closing costs are 'rolled in' with a purchase transaction.

Most FHA lenders also charge a 1% origination fee, but not 'discount points'. If they do charge the discount point, then make sure you're receiving a really low rate. You may pay processing, underwriting, tax cert, flood cert, and other fees on the lender portion for FHA mortgages.

The fees aren't fixed, and they are negotiable.

banker0679 · Posted: Tue Mar 18, 2008 9:02 am Post subject:

to clarify - the fha funding fee 1.5% is fixed.....that is not negotiable as it is mandatory per FHA

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