Fees for HUD 223(a)(7) Refinancing Existing FHA-Insured Loans
Below are the fees associated with HUD 223(a)(7) refinancing:
HUD Application Fee
HUD charges a 0.30% application fee (0.30% of the mortgage total). Half of this is a mortgageable cost while the other half is credited back at closing
Additional Fees, Deposits, & Expenses
Borrowers also pay additional fees related to the loan. These include lender fees (outlined below), which can be included in the loan amount.
Rate Lock Deposit: Up to 1.0% of the loan amount. Refunded when a GNMA investor accepts the loan.
Finance Fee: Up to 2.0% for loans over $2 million (due at closing).
Placement Fee: Up to $40,000 for loans less than $2 million (due at closing).
Inspection Fees: No inspection fees, even if there are deferred non-critical repairs.
According to HUD, the maximum lender financing fees may not exceed the amounts below:
Loan amount up to $2,000,000:
Maximum Lender Fees (not bond transactions): 3.50%
Maximum Lender Fees (bond transactions): 5.50%
Portion of the loan amount above $2,000,000:
Maximum Lender Fees (not bond transactions): 2:00%
Maximum Lender Fees (bond transactions): 4.00%