Reasonable Fees on FHA Loan

[moserls]

My son has qualified for an FHA loan, but the fees seem excessive to me. They are estimating 11% of the loan amount, not counting of course prepaids for insurance and taxes, or cost of points. In addition, they are quoting and additional 2% for "construction loan" fees. With prepaids and points, a $146,000 loan for home and set up/improvements is costing almost $30,000 more. He is concerned that he will never be able to resell at this price. The good news that the loan has a 5.5% interest rate.

Does anyone know if these fees are "reasonable"?

[rmurray]

The construction loan fee souds about right but the other fees seem a little high. Get a copy of his RESPA disclosure forms and post the individual items here. 11% plus points sounds high. Of course the market value appraisal must have come in high enough to cover them, meaning a professional appraiser has made a determination that the loan amount is NOT too high for the market.

[moserls]

Thanks. I'll see if I can get the disclosure forms for the individual items and get them posted. The reason the market value came in high, I suspect, is that the land is valuable.