Effective with the new GFE & HUD-1 statements that are required as of 1/1/10, there is no limit on origination fees. This is due to brokers having to credit borrowers with any rebate/yield spread premium they make from a wholesale lender, and then in order to get it back origination points have to be charged (in the end it's a wash, broker credits 2 points and then charges 2 points, etc.), so the 1% limit was lifted.
Mortgagee letter on that can be found at
http://www.hud.gov/offices/adm/hudcl...es/09-53ml.pdf
There is monthly mortgage insurance (MMI) and upfront mortgage insurance premium (UFMIP).
Effective on FHA case #'s pulled on/after April 5th of 2010 the UFMIP increased to 2.25% for purchase & refinances, except for on reverse mortgages it's at 2%, and HOPE 4 Homeowners (for delinquent mortgages) it's 2%. This means on a $38,600 loan amount the UFMIP will be $868.50.
For loan terms greater than 15 years, and loan-to-values above 95%, the MMI is .55% of the base loan amount per year, paid on a monthly basis (so on a $100k base loan amount that's $550/year, or $45.73/mo). On your $38,500 loan amount it'd come out to $17.65/mo. 95% loan-to-value and below it's .5% (saves 1/20th of a percent).
For loan terms of 15 years or less, above 90% loan-to-value the MMI is .25% per year. 90% loan-to-value or below there is no MMI.
Mortgagee letter on that can be found at
http://www.hud.gov/offices/adm/hudcl...es/10-02ml.pdf
FHA doesn't do the appraising, FHA approved appraisers do the appraising. Appraisal fees for FHA mortgages commonly come in the $400-500 range. This is due to FHA appraisals having to be ordered in compliance with the HVCC (Home Valuation Code of Conduct). The HVCC basically states that no one at the lender who is compensated based on a loan closing can partake in the appraiser selection process. This is because there were several bad apple loan officers & appraisers who were in collusion to appraise homes for a certain amount in order to make a financing transaction work. Most loan officers & appraisers didn't partake in such a practice, but a few bad apples spoil the bunch, so the HVCC was created. In order to be compliant many lenders have opted to make use of 3rd party appraisal management companies (AMC's) rather than hiring a separate individual to order the appraisals. AMC's don't work for free, so in addition to the appraisal fee they charge an additional appraisal management fee of $50-100. This fee is passed on to consumers in the form of the higher appraisal fee. Appraisers are reportedly being paid less than their normal fees as well, and I could gripe about the difficulties with the HVCC process but that is for another time and place.
The mortgagee letter that mostly addresses appraisals having to be within HVCC compliance can be found at
http://www.hud.gov/offices/adm/hudcl...es/09-28ml.pdf