Planning to purchase a home in Florida with an FHA loan? You’ll also need to factor in your closing costs. Some buyers falsely think that the only upfront cost that they’ll need to prepare for is the 3.5% (or so) for the down. However, there are other fees that need to be paid before closing the loan. These closing costs are universally required –whether you apply with Element Home Loans on the Treasure Coast or another Florida mortgage lender. Read on to learn more. 

What are FHA closing costs all about?

All mortgage loans, including FHA loans with Element Home Loans on the Treasure Coast, have closing costs that cover origination fees, upfront mortgage insurance premiums, and other prepaid items associated with closing the loan.

The amounts vary by state but you won’t get surprised when you’re presented by them at closing time. Well before that final day, you’ll receive a closing costs estimate, and 3 days before the final closing, you’ll get a disclosure where all fees are broken down and totaled to make it easier for you to understand.

Looking to apply for an FHA loan in Florida? Get in touch with one of our loan officers at Element Home Loans on the Treasure Coast for a consultation.

How much will your FHA closing costs be for a Florida home?

There is no set amount that we can say will be your closing costs on an FHA loan. The amount depends on the size of the loan and the percentage that that specific mortgage professional charges as an origination fee. 

But for an example, let’s say your loan is $300,000, and the lender charges a 1% origination fee. That means that you’ll pay $3,000 in closing costs. 

Other fees that are part of closing costs include appraisal fees, title services, and flood zone certification, to name a few.

As a rule of thumb, prepare a budget of 2% to 6% of the loan amount for closing costs. So for a $300,000 loan, you need around $6,000 to $18,000 in closing costs.

Getting Help With Closing Costs

There may be ways that you can reduce your closing costs. For example, your real estate agent may be able to negotiate a deal with the seller and there also may be special programs that offer grants. 

If closing costs with your FHA loan are giving you a problem, our loan officers at Element Home Loans on the Treasure Coast of Florida can help figure out a solution that works for you.