How do you calculate closing costs on an FHA loan?
FHA closing costs = normal buyer costs (2–5%) plus the upfront mortgage insurance premium (UFMIP) of 1.75% of the loan. On a $350,000 purchase with 3.5% down, UFMIP adds $5,915 — usually financed into the loan rather than paid in cash.
FHA closing worksheet: $350,000 price, 3.5% down
| Item | Amount | Note |
|---|---|---|
| Down payment (3.5%) | $12,250 | Loan = $337,750 |
| UFMIP (1.75%) | $5,911 | Usually rolled into loan → $343,661 |
| Standard closing costs (2.5–4%) | $8,750–$14,000 | Same buckets as conventional |
| Cash to close | ≈ $21,000–$26,000 | Down payment + costs |
How to read this table
- Cash to close sits at the top of the table (≈ $21,000–$26,000) — down payment + costs. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- UFMIP (1.75%) anchors the bottom ($5,911) — usually rolled into loan → $343,661. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 4.4×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 4 reference points in the "fha closing worksheet: $350,000 price, 3.5% down" table, the fastest way to use this page is to find the closest row, take its amount, then stress-test it ±30% before you build a plan on it.
Context
FHA's cash advantage is the 3.5% down payment, not cheaper closing costs — UFMIP makes the fee side slightly heavier. Seller concessions up to 6% of price are allowed (vs 3% on low-down-payment conventional), so FHA buyers should almost always ask. The annual MIP (0.55% for most 30-year loans) shows up in the monthly payment, not closing costs, but it lasts the life of the loan if you put under 10% down — the main reason buyers refinance out of FHA once they reach 20% equity.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
UFMIP 1.75% per HUD guidelines; annual MIP 0.55% for 30-year terms with ≤5% down (2025 schedule). Concession cap 6% per HUD.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate closing costs on an FHA loan?
FHA closing costs = normal buyer costs (2–5%) plus the upfront mortgage insurance premium (UFMIP) of 1.75% of the loan. On a $350,000 purchase with 3.5% down, UFMIP adds $5,915 — usually financed into the loan rather than paid in cash.
Which option pays the most in the fha closing worksheet: $350,000 price, 3.5% down table?
Cash to close, at ≈ $21,000–$26,000 (Down payment + costs). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
UFMIP (1.75%) at $5,911 (Usually rolled into loan → $343,661). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 4.4×. Financing terms and true operating expense ratio explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
UFMIP 1.75% per HUD guidelines; annual MIP 0.55% for 30-year terms with ≤5% down (2025 schedule). Concession cap 6% per HUD.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.