A Breakdown of Allowable HUD Closing Costs

There are some HUD closing costs to be aware of. These costs are generally paid by HUD to facilitate the sale of the home. Knowing these costs will make the home selling and buying process much easier for all involved. HUD will pay no more than 3% of the home's purchase price to cover these expenses:

  1. Prorated property tax and Homeowner's Association Fees (if applicable.)
  2. Condo or HOA transfer fee (if applicable.)
  3. $200 repair escrow fee, where applicable.
  4. Closing agent or Settlement fee. This will only be paid if a HUD agent is used. If another agent is used, the purchaser will have to pay that fee out of pocket.
  5. Recording fees.

Other Fees

Other fees listed below may be paid as well, as long as they are placed on line 5. 

  1. Appraisal Fees.
  2. Credit Report fee up to $20.00
  3. Loan Origination, up to 1%. 
  4. Discount points,  up to 3% buy down with lender certification.
  5. Warranty.
  6. Home Inspection.
  7. Flood Certification.
  8. Survey fees, if required by the lender. 
  9. Title Insurance coverage for both lender and owner.
  10. Recording and tax transfer fees.
  11. Prepaid escrow purchases for owner-occupant purchases.

If too much money is placed on line 5, you will lose the difference between that amount and the actual closing costs. Work with the real estate agent to make sure the dollar amount on the line is correct. 



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