What Does a 3.5 Percent Closing Cost Mean for an FHA Loan?. Part of the series: Reaching Your Financial Goals. People familiar with FHA loans may have seen the term "3.5 percent closing cost." Learn about what 3.5 percent closing cost means for an FHA loan with help from a certified financial planner in this free video clip. Read more: http://www.ehow.com/video_12217676_35-percent-closing-cost-mean-fha-loan.html