I have not closed yet, but we are under contract. On a $200,000 home with 3.5% and the upfront FHA fee included in the loan, we were quoted $5336 in closing costs with 1 point, so about 2.6% which my lender said was normal for an FHA loan. We are under contract for $198,000 with $5300 in seller paid closing costs. We decided to buy down another .25% for $489, so our closing costs are slightly higher than the $5300, but our realtor also agreed to give us a $1000 credit on his commission (actually, he is technically giving it to the seller and they are giving us $1000 more for closing), so all of our closing costs and an additional $250 upfront HOA fee will be covered and there will be a little left over applied to our principal. We have already paid for the appraisal upfront, so we will get that back towards our down payment at closing. The only other thing we had to pay for was the inspection as it is voluntary and not refundable, so we will end up paying $425 total in addition to our down payment. I hope that made sense.
