Because the 203K Mortgage is a combination permanent/construction loan, there are some additional up-front costs. Nevertheless, we believe the benefits, particularly the ability to create added value, are well worth the extra expense. As in any FHA mortgage, some of the closing costs cannot be paid by the Buyer and are usually paid by the Seller. The Seller can pay closing costs equal to 6% of the selling price. Unlike other FHA loans, there is no upfront mortgage insurance premium. With the down payment of $3,000, the total cash required would be approximately $9,800. However, keep in mind that the Seller can pay for certain recurring and all non-recurring costs. The appraisal fee is higher for 2-4 unit properties. The HUD consultant's fee schedule is set by HUD and varies with the amount of construction work required and the type of property. Supplemental Origination fee will depend on the rehabilitation cost.