I remember reading about fees regarding FHA loans, but I'm going back and trying to find them and I am getting nothing.

I seem to remember there is a 1.5% fee at closing, and a .5% fee per year. The percentages are based on the loan you've taken out. And the .5% fee is similar to PMI in that it goes away once you reach a LTV ratio of 80%. Is this correct?

Can anyone who has dealt with an FHA loan answer this for me?

Thanks,
Teke

Why don't you call the Loan Originator or Mortgage Consultant that you've been working with ?

In the present financial climate, all of these federal loan programs are subject to frequent changes; so to get accurate July, 2008 information, it would be most expedicious for you to talk with someone who works with the details of the various FHA Programs every day.

The FHA fees are actually changing Juy 14th. They will no longer be "one size fits all" fees. As a new poster to the site, I am unsure how to copy and paste teh table here, but you can view it at http://loansinaz.com/index.php?page=306

It can be a little confusing, so please let me know if you have questions.

So it appears that the minimum fee is going up to 2.5% (125/50)? Am I reading that right?

I just wanted to post my findings for anyone searching this topic later. The FHA equivalent to PMI, I found is now a sliding scale rate based on your credit and down payment.

The funding fee is similar. I found out that although it's a closing cost, FHA prefers this fee be rolled into the loan over being paid by the seller. I wasn't certain if this is a requirement however.