FHA Closing costs

[Anonymous]

Is FHA closing costs  higher than conventional mortgage?

[StartingOver10]

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@Anonymous wrote:

Is FHA closing costs  higher than conventional mortgage?

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I haven't noticed that they are higher at all except for the UFMIP.  The difference is the UFMIP and that is usually rolled into the loan amount. If you pay the UFMIP at closing then they are higher.  However, the PMI rate for a conventional loan is higher than the MIP for FHA at the same LTV if your credit scores are in the lower ranges (below 680), 

Have your LO provide the figures to you for the same loan so you have hard data to compare - one using FHA financing and one using conventional financing. 

[BrianB_The_Loan_Professor]

The costs are about the same with that one exception - the upfront Mortgage Insurance is added to the loan balance 99% of the time - so if your concern is out of pocket costs or costs at closing then they should be close to the same - 

Do a side by side comparison and see which makes the most sense - usually fha is for credit challenged borrowers with little down - 

Brian B

[DallasLoanGuy]

appraisal is a smidge more at most lenders.

the ufmip is an additional cost... but it can be rolled into the loan and not be an out of pocket expense.

all else should be the same costs.

[Anonymous]

Appraisal is typically $50-$100 more, but you may save a few dollars (literally) in prepaid interest due to a lower rate. UFMIP is typically rolled into the loan as others mentioned.