Home Buying in 91402>Question Details

PA, Home Buyer in Granada Hills, CA

Is it legal to charge for both a Loan Origination fee at 1% AND Mortgage brokers fee at 1% on an FHA loan?

Asked by PA, Granada Hills, CA Mon Sep 14, 2009

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That does not sound in compliance with FHA rules. Usually there is only a 1% origination fee and then a loan processing and underwriting fee. You can have "discount points" in addition to the origination fee only if you have decided to buy the interest rate down below par rate.

But if the "mortgage brokers fee" of 1% is in addition to a 1% origination fee, and is NOT a discount point, then yes that is NOT allowed on an FHA loan.
0 votes Thank Flag Link Mon Sep 14, 2009
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