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Estimate the Closing Cost on FHA Streamline Refinancing, Consturction Loans & Other FHA Options

Current Local Mortgage Rates

Here is a table listing current conforming mortgage rates in your area, which you can use to compare against FHA loans.

FHA Closing Cost Calculator

For your convenience there is a tab near the top of the page listing current local mortgage rates. You can use these rates to estimate the price of various mortgage loan products.

Who Pays the Closing Costs?

All mortgages have closing costs associated with them. These costs can be paid by the property buyer, the seller, the lender or some combination of the three. They are typically paid either directly by the buyer, or indirectly through the lender charging a higher rate of interest.

FHA guidelines state the property seller may contribute the following:

The seller and/or third party may contribute up to six percent of the lesser of the property’s sales price or the appraised value toward the buyer’s closing costs, prepaid expenses, discount points and other financing concessions.

FHA loans have a minium down payment requirement as low as 3.5%. This amount excludes any closing costs, as closing cost payments may not be counted as part of the downpayment:

Closing costs (non-recurring closing costs, pre-paid expenses, and discount points) may not be used to help meet the borrower’s minimum required investment.

Down Payment Requirements

Borrowers with poor credit scores can still qualify for FHA loans, but those at the lower end of the spectrum will require a larger down payment.

FICO Credit Score Range Minimum Down Payment Amount
580+ 3.5%
500-579 10%
< 500 Unlikely to Qualify

The typical limits on front-end ratio & back-end ratio are 31/43, though people with compensating factors may be approved up to a back-end ratio as high as 57%. FHA loans also require paying an upfront mortgage insurance premium (MIP) and an ongoing monthly premium which acts similarly to PMI on a standard conforming mortgage, though the periodic MIP payments last for the duration of the loan, or until it is refinanced.

Use this calculator to help estimate the total closing cost to purchase a home using an FHA loan. This is an estimate of how much you will need on the day your home purchase is made. Please remember that this is an estimate, the actual fees and expenses may change depending on a variety of factors including the actual closing date. Below is a summary of the inputs and calculations used to create this estimate.

FHA loan document.

Want to learn more about FHA loans? If so, we also pulish an in-depth FHA loan guide and provide a FHA loan qualification calculator.