Do FHA Down Payment Assistance Programs Only Cover Down Payments?
No, FHA down payment assistance programs cover both down payments and closing costs. Standard mortgages require a 20 percent down payment. There are additional closing costs in the form of title insurance, transfer taxes, appraisals and document preparation fees. These items can sometimes add up to several hundreds or even thousands of dollars. The FHA will allow you to roll these closing costs into your mortgage, or will help you by providing assistance with paying the closing costs.
