FHA Closing Costs
FHA Closing Costs that may be charged
to the borrower and may be included in the borrower's 3% investment
requirement:
- Appraisal Fee Flood Certification Survey
- Attorney Fee (3rd Party Only)
- Home Inspection fee (purchases) up to $200
- Tests or treatment required by HUD
- Courier Fee - only on Refinances and must have borrower's consent
- Inspection Fee (repairs/completion) by Appraiser
- Title Exam
- Credit Report
- Origination Fee (up to 1% of base loan amount)
- Title Insurance endorsements
- Deposit Verification fees
- Pest Inspection
- Title Insurance Policy (both Lender and Owner policy)
- Document Tax Stamps on note/mortgage
- Real Estate Broker fees
- Title Search/Abstract
- Document Preparation Fee (third party)
- Recording fees for both mortgage and deed
- Engineer Certification of foundation for Manufactured homes
- Settlement Fee (Attorney) 3rd party
Unacceptable FHA Closing Costs (Cannot be charged to Borrower):
- Application fee
- Photocopies
- Tax Service fee
- Delivery fee
- Disbursement fee
- Re-draw fee
- Warehousing fee
- Judgment fee
- Review fee
- Wire fee
- Notary fee
- Transfer fee (for assignment of mortgage)
FHA Closing Costs That May Be Charged To The Borrower But Cannot Be
Included In The 3% Investment Requirement:
- Amortization schedule Lock in or Commitment fee
- Application fee Name affidavit fee
- Commitment fee
- Name affidavit fee
Reference: Mortgagee Letter 2006-04
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