FHA 203b Loan Fees: What You Need to Know

FHA Loan Fees for 203b Loans

Just like with any FHA loan, there are a variety of fees that 203b loan borrowers may have to pay at closing or during the home purchase process. These fees often include appraisal fees, credit report fees, inspection fees, document preparation charges, and other similar costs. Other associated fees may include real estate brokerage fees, wire fees, courier fees, recording fees and recording taxes.

FHA Non-Allowable Fees

In addition to the fees listed above, which lenders are permitted to charge borrowers, there are some kinds of fees that are prohibited by the FHA/HUD. These include anything over and above "fair, reasonable, and customary fees and charges" as well as any “unearned fees.” These could include extremely high loan origination fees, very expensive loan broker fees, and other costs that a borrower could not reasonably expect to be charged.

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