Question Details

John G., Home Seller in South East Wisconsin

What is the penalty for early sale of property on FHA loan?

Asked by John G., South East Wisconsin Tue Oct 28, 2008

I purchased a condo 1 year 3 months ago with an FHA loan. Due to changes in life and changes in the "associations rules and restrictions" I am looking at moving. What is the length of time I need to carry out my loan in order to avoid penalties before I can sell? Property is in South Eastern Wisconsin....

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Lending answer:

FHA requires mortgagors (lenders) to verify that the residence secured by an FHA insured mortgage to be occupied by the borrower within 60 days of closing and for at least 12 months after occupying.

If you've owned and occupied the residence for 15 months, you won't have an issue if you decide to sell.
0 votes Thank Flag Link Tue Oct 28, 2008
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