FHA Closing Costs

FHA World - FHA Closing Costs

The FHA has a list of closing costs that can be charged to a borrower. These are referred to as “allowable costs.” Anything that is not on the list is, by definition, considered as non-allowable.

Allowable fees for an FHA loan may include costs for the following types of services:

• Mortgage origination
• Deposit verification
• Attorney services
• Home appraisal
• Title insurance and examination
• Document prep
• Survey of the property
• Pulling credit reports
  

What we've done is break down closing cost into three categories.

FHA World - Bank Fees

These are fees that lenders are allowed to charge.

FHA World - Third Party Fees

These are fees that are paid to companies that provide a service.

FHA World - Escrows

FHA loans require an escrow account. Your property taxes and property insurance will be paid each month with your mortgage payment.

Since property taxes and property insurance vary with each property we will give you a general idea of how escrows work.