Lender Fees in Relation to HUD 232 Loans
Just like other kinds of financing, HUD 232 loans have certain application fees, including a HUD application fee, an FHA inspection fee, and lender application fees. Keep reading to see the entire list of typical fees for HUD 232 loans.
HUD 232 Loan Fees: What You Need to Know
Just like other kinds of HUD multifamily financing, HUD 232 loans have certain application fees, including a HUD application fee, an FHA inspection fee, and lender application fees. Keep reading below to see the entire list of typical fees for HUD 232 loans.
What are the Typical HUD 232 Loan Fees?
Here are some of the most common fees for HUD 232 loans:
A non-refundable 0.3% HUD Application fee (0.3% of the loan amount)
0.5% FHA inspection fee (paid from loan proceeds)
Lender application fees (which cover due diligence activities and third-party reports)
Good faith deposit for commitment and rate lock (between 0.5% and 1% of the loan)
Funds for initial replacement reserves
Standard closing costs (may include legal and title costs)
Related Questions
What are the fees associated with HUD 232 loans?
The fees associated with HUD 232 loans include a non-refundable 0.3% HUD Application fee (0.3% of the loan amount), a 0.5% FHA inspection fee (paid from loan proceeds), lender application fees (which cover due diligence activities and third-party reports), a good faith deposit for commitment and rate lock (between 0.5% and 1% of the loan), funds for initial replacement reserves, and standard closing costs (may include legal and title costs).
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What are the costs of origination for HUD 232 loans?
The costs associated with a HUD 232 loan are dependent on specific loan circumstances. In general, borrowers are responsible for:
- A nonrefundable HUD application fee of 0.3% of the loan principal (Source)
- FHA inspection fee of 0.5% paid from loan proceeds (Source)
- Lender application fees applied to due diligence activities and third-party reports, including credit reports, appraisals, plan reviews, and market studies (Source)
- Good faith deposit (rate lock and commitment): between 0.5% and 1% of loan amount paid at commitment and refunded at closing (Source)
- Initial replacement reserves (Source)
- Standard borrower closing costs (Source)
What are the closing costs for HUD 232 loans?
The closing costs for HUD 232 loans typically include legal and title costs. Additionally, there is a non-refundable 0.3% HUD Application fee (0.3% of the loan amount), a 0.5% FHA inspection fee (paid from loan proceeds), lender application fees for due diligence activities and third-party reports, a good faith deposit for commitment and rate lock (between 0.5% and 1% of the loan), and funds for initial replacement reserves.
What are the servicing fees for HUD 232 loans?
The servicing fees for HUD 232 loans are typically 0.25% of the loan amount. This fee covers the cost of servicing the loan, including collecting payments, managing escrow accounts, and other administrative tasks.
For more information on HUD 232 loan fees, please see the following sources:
Are there any additional fees associated with HUD 232 loans?
Yes, there are additional fees associated with HUD 232 loans. These include a non-refundable 0.3% HUD Application fee (0.3% of the loan amount), a 0.5% FHA inspection fee (paid from loan proceeds), lender application fees (which cover due diligence activities and third-party reports), a good faith deposit for commitment and rate lock (between 0.5% and 1% of the loan), funds for initial replacement reserves, and standard closing costs (may include legal and title costs).
For more information, please see the following sources: