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:
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.
FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
FHA requires a minimum credit score of 500 to buy a home or refinance
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure must have been resolved for at least 3 years
Government loan: Seasoning is determined by the date the claim was paid
Loans other than Government: Seasoning is determined by the date of sale the lender sold the property
FHA guidelines requires three year past from the date of sale of the property
What documentation will I need?