There are many direct lenders doing these loans at par (i.e. no points). You will have to pay for the appraisal, lender's title insurance, escrow, and some lender fees. FHA appraisals run around $400, title and escrow should be no more than $2,000 for both combined, and lender fees should be under $1,000.
The only way to know the exact cost of this loan, and whether you will qualify, is to speak with a lender. Of course, as mentioned below, if you qualify for a conventional loan it could save you money. FHA has an upfront mortgage insurance premium (which they usually finance into the loan) and a monthly mortgage insurance premium (which I believe you have to pay for 5 years regardless of your loan to value). You might want to comparison shop.
If you need a referral to a couple of great direct lenders, please feel free to contact me by phone or e-mail. I work in the South Bay and may be able to direct you to someone who can help you out. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty