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Mortgage Grapevine

Allowable Fees by FHA

Good Day, I have been out of the loop for about a year and a half and have question about allowed fees on FHA files. Can you charge a processing and admin fee? Must these fees then be paid by the seller...and how does that really help the borrower if you can charge extra fees that then eat up the seller contibutions? Thanks.
by mh@mctfin November 20, 2009 2:12 PM


http://portal.hud.gov/fha/reference/ml2006/06-4ml.doc
by dead eye November 20, 2009 2:50 PM


While 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. 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.

Processing Fee if from a third party and approved in writing by the borrower, No admin fee allowed.
by mrmtg@nac.net November 22, 2009 12:19 PM


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