Hello Lisa, no there is no pre-payment penalties on FHA loans. Depending on the city you purchased in will determine if you will realize any equity to cover the costs to sell a home.
You can buy another home with FHA as long as you are selling your home that has an FHA loan. You can only have one FHA loan at a time. Now you could rent it out and purchase another home FHA if you are increasing in family size or a job relocation.
Any agent like myself can run a CMA, comparative market analysis, to evaluate your market value to make an informed decision. Also you want to go over financing choices as well to know your options, payments, down payment, interest rates, etc.
You may qualify to buy FHA 3.5% down from a minimum 580 fico score or 3% down conventional from a minimum 620 fico score. With a little discussion and CMA you would be able to put together a game plan.
When do you plan on selling and are you staying in CA and purchasing another property or intend on renting?
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran and VA/CalVet Loan Specialist
Credit Repair Advice At No Cost
ALL Loan Programs Available
24+ Years Experience