Q:

How can you find an estimate of FHA closing costs?

A:

Quick Answer

Closing costs are the fees and other costs associated with buying a home that are not actually attached to the purchase price the buyer agrees to pay, notes Investopedia. There are a variety of services that provide online calculators to help prospective home buyers estimate the total dollar value of potential closing costs when buying a home; these calculators often require information such as the purchase price of the home and the total amount of the buyer's home loan. There is not a special class of closing costs for Federal Housing Authority (FHA) loans, so using a standard closing costs calculator may be an effective means of estimating what these fees will be.

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Full Answer

When it comes to closing costs, the main difference between FHA loan home purchase transactions and those with non-FHA loans is the fact that some buyers may be able to roll closing cost fees into the total amount of their FHA loan. This means that the buyer has to pay less money out of pocket when closing on a house. Buyers with FHA loans may also be able to get other parties, including the home's seller or builder, to cover some or all of the closing costs, as reported by the Huffington Post. The tradeoff for a lender covering these fees is that the borrower may have to pay a higher rate on the loan.

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