FHA loans come with closing costs, which can be significant. These costs include lender fees, third-party fees, and prepaid items. Using an FHA loan closing cost calculator can help estimate these costs. It's important to calculate and understand these expenses before signing the mortgage. Closing costs typically range from 3% to 6% of the loan amount. FHA loans also require a mortgage insurance premium (MIP). There are ways to lower closing costs, such as negotiating with the seller or rolling the costs into the mortgage. Despite the costs, FHA loans can be a valuable option for homebuyers.