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I purchased my home with a FHA loan in WA, loan company said I can't sell for 9 yrs or I would pay a penalty, is this true?

by robertfwacklin77 from Everett, Washington. Aug 13th 2018 Reply


Dave Skow (daveskow)
#16 ranked lender in Washington - 148 contributions

Robert - if a regular FHA loan - there is no penalty to sell and payoff the loan

Aug 13th 2018
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Very very untrue!

Aug 13th 2018
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

No, FHA loans do not have a pre-payment penalty.. However, if you used "Grant" funds to purchase the home, it's possible the agreement you signed to accept those funds had some sort of penalty/repayment if you moved out or sold early.. Find your closing packet with all the closing documents you signed.. look to be sure that you actually have an FHA loan, and then also look to see if there are any other documents that refer to any grant funds you might have received.. Or try this.. Call the lender who told you that there was a pre-payment penalty, and ask them to show you where you signed agreeing to this.. best of luck to you.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Aug 14th 2018
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Dalibor Vavrek (Dalibor)
#89 ranked lender in Washington - 27 contributions

What is the name of that lender? FHA loans don't penalties.

Aug 15th 2018
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Dalibor Vavrek (Dalibor)
#89 ranked lender in Washington - 27 contributions

I am curios what lender told you that since FHA loans don't have pre-payment penalty.If for down payment you used some kind of state assistance program there could be a provision of penalty regarding that portion of the loan, check your papers, but FHA loan itself doesn't have a penalty.

Aug 15th 2018
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