This is one of the key benefits to the FHA program. Gift donors are restricted primarily to a relative of the borrower Closing Costs. Closing costs, or settlement costs, are paid when the home buyer and the seller meet to exchange the necessary papers for the house to be legally transferred. This percentage may vary, depending on where you live. Closing costs include loan origination or discount points, prepaid homeowner's insurance, appraisal fee, lawyer's fee, escrow fee, recording fee, title search and insurance, property taxes, mortgage insurance and other fees.
Points are finance charges that are calculated by the lender at closing.
The more points you pay, the lower your interest rate will be. FHA rules impose limits on some of the fees that mortgage, escrow or title companies may charge. Is Much Like Applying For A Regular Loan. A credit report will be obtained on the borrower and any lates, collections, judgments, foreclosures, bankruptcies, etc. If you have any lates, unpaid collections or unpaid judgements in the last one year, call our office.