The FHA and VA have very strict guidelines for what fees and costs can be paid by the buyer, known by the FHA and VA as the borrower. The fees and costs that cannot be paid by the buyer (borrower) are usually the seller's responsibility.
The FHA borrower may be charged:
Home inspection: $200 or actual, whichever is less
Escrow fee: One-half of total, never more than the seller
Notary fee: $10 per person and no more than $40
Onetime MIP (mortgage insurance premium, to protect lender if mortgage isn't paid)
1 percent origination fee
Discount
$5 maximum payoff charge per bill, no liens
Beneficiary statement: $15
The FHA borrower is not allowed to pay:
Rent and interest on the same day
Tax service contract fee
Processing fee
Termite work
Charges for drawing additional documents
Homeowner's association transfer fee
Assignment fee
Interest prior to date of recording
Federal Express or messenger fees
Change of ownership
Document fee or redraw
Fee to record corporation assignment
Charges to other lenders
Subescrow fee
The VA borrower may be charged:
Recording fee: Actual fee charged by recorder's office
Credit report
Appraisal fee
Title insurance: ALTA
Tax proration to day of recording
Buyers protection policy if required by veteran
VA funding fee
1 percent origination fee
The VA borrower is not allowed to pay:
Escrow fee
Rent and interest on the same day
Appraisal fee if not in vet's name
Termite report and work
Notary fee
Charge for drawing additional documents
Homeowner's association transfer fee
Charge for other lenders
Processing fee
Tax service contract fee
Subescrow fee
Change of ownership
Federal Express or messenger fees
Document fee or redraw
Fee to record corporation assignment
