Posted on: 19th Aug, 2009 06:19 am
Are transaction fees allowed on FHA loans?
You can include your closing cost in the FHA
Most of the lenders decide that on the basis of the credit score you have, so if you have a good credit score then surely they will waiver off the processing fees as they are getting a good customer with a minimised risk, but if your credit score is low and just fulfilling the bare requirement of 620 then there could be some chances, because I have learnt over a past decade that banks get more revenue from those who are financially stuggling than those who are stable financially in terms of different charges. like late payment charges,higher interest rates,and all that stuff.
fred, that was an awfully long sentence. i had to sit back and breathe for a solid 30 seconds before i could sit back up again and begin to type.
fees on a mortgage are generally not credit score-centric. the fees are definitely revenue for a mortgage lender, and often they comprise part of a loan officer's income. waiving those fees is often done, but equally as often not done, probably.
and since a mortgage company counts on some of that fee revenue, a loan officer who waives one or more will probably have to absorb the full cost himself. that being the case, you'll find more and more loan officers resistant to waiving fees.
fees on a mortgage are generally not credit score-centric. the fees are definitely revenue for a mortgage lender, and often they comprise part of a loan officer's income. waiving those fees is often done, but equally as often not done, probably.
and since a mortgage company counts on some of that fee revenue, a loan officer who waives one or more will probably have to absorb the full cost himself. that being the case, you'll find more and more loan officers resistant to waiving fees.
the costs associated with a home mortgage can vary for many reasons. here are a few to think about:
*there are many types of loans, fha, conventional, private money, and more. each loan, and lender have a different schedule of fees.
*the type of transaction, for example a purchase transaction may be more expensive than a mortgage refinance or vice versa depending on how the contract is written up.
*the state you're applying, some states have higher fees than others.
*the costs can also vary depending on who is arranging the loan, a bank, broker or private lender may all have different fees.
my advice is to do your homework, and make sure you're working with a reputable mortgage company to prevent being overcgarged. in addition have your loan officer present all of your options to make sure you're choosing the right loan package since you'll be writing the check every 30 days.
jason estes
*there are many types of loans, fha, conventional, private money, and more. each loan, and lender have a different schedule of fees.
*the type of transaction, for example a purchase transaction may be more expensive than a mortgage refinance or vice versa depending on how the contract is written up.
*the state you're applying, some states have higher fees than others.
*the costs can also vary depending on who is arranging the loan, a bank, broker or private lender may all have different fees.
my advice is to do your homework, and make sure you're working with a reputable mortgage company to prevent being overcgarged. in addition have your loan officer present all of your options to make sure you're choosing the right loan package since you'll be writing the check every 30 days.
jason estes
amen, jason - well put.