FHA defines which closing costs are allowable as charges to the borrower. The specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

FHA Loan Rates

March 1, 2015
FHA Rates for March 1, 2015
30 Year Fixed
3.5% Rate
3.74% APR
15 Year Fixed
2.75% Rate
3.0% APR
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FHA Requirements

Closing Costs and Allowable Charges

While FHA requirements define which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office. All other costs are generally not allowed and are usually paid by the seller when buying a new home, or paid by the lender when refinancing your exising FHA loan.

  • Lender's origination fee
  • Deposit verification fees
  • Attorney's fees
  • The appraisal fee and any inspection fees
  • Lender's origination fee
  • Cost of title insurance and title examination
  • Document preparation (by a third party)
  • Property survey
  • Credit reports (actual costs)
  • Transfer stamps, recording fees, and taxes
  • Test and certification fees
  • Home inspection fees up to $200

Allowed in an FHA refinance loan are wire transfer fees, courier fees, reconveyance fees, and fees to payoff bills.

FHA Loan Articles

Read About Mortgage News, FHA Updates, and Guidelines
FHA Reduces Annual Mortgage Insurance Premiums

FHA made an announcement about cuts in the annual mortgage insurance premium (MIP) in a preliminary January 2015 announcment. The new FHA policy reduces the rate for most Title II forward mortgages with terms greater than 15 years.

FHA Mortgage Insurance Premiums Requirements

There are many types of questions about FHA mortgage insurance premium requirements, but since the FHA changed its MIP policies to extend MIP for the maximum duration permitted by law, we've seen more questions about those changes.

Private Mortgage Insurance Requirements

One common question we get involves Private Mortgage Insurance and the premiums for that insurance. Borrowers should discuss PMI policy changes with a loan officer.

FICO Scores and FHA Lender Requirements

The FHA has a section in its rulebook that lists a minimum FICO score for borrowers. In general, if your FICO score is below 580, you won't qualify for the lowest down payment amount of 3.5%. This minimum may be lower than the standards set by lenders.

Minimum Property Requirements for Septic Systems

Lenders are responsible for making sure a property lives up to local requirements, community sewage systems are properly licensed, and these systems are adequate enough to service the property.