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Will i be penalized for selling my home that is an fha loan?

by jeanclaude.toma884 from Dallas, Texas. Oct 22nd 2014 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,917 contributions

Yes but No. There is no pre-payment penalty on FHA loans, but FHA kinda does have a small penalty.. For FHA, the full months interest is charged to your account on the first day of the month.. if you pay off your loan on the 2nd day of the month, then you should be due a refund of pre paid interest since you paid for the whole month but only used 2 days.. FHA will not refund you any pre paid interest.. For this reason, with FHA payoffs, it's best you target the last few days of the month for closing rather than the first part of the month.. Also, FHA's upfront mortgage insurance premium is non refundable.. so even if you sell your home 3 months after purchasing it, you wont get a penny of that premium back. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Oct 22nd 2014
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Edward Fallon (edfallon)
#92 ranked lender in Pennsylvania - 143 contributions

No

Oct 22nd 2014
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Larry Gray (lgray_312_247)
#565 ranked lender in California - 1,127 contributions

I second the no. However, William Acres, provides good information on what minimal cost there might be to you indirectly when an FHA loan is paid off through the home sale.

Oct 22nd 2014
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No. Call me directly to discuss your specific needs. Lynn Wilson 817.939.8987.

Oct 22nd 2014
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Joan Gallardo (apply@clearlending.com)
#197 ranked lender in Texas - 23 contributions

No penalty. You will only be responsible to pay full balance plus one full month interest payment at closing regardless of date of month. Then no matter how soon you pay off mortgage closing costs will not be refunded as expressed in Truth-In-Lending.

Oct 23rd 2014
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