FHA Loan

You can sell it if you wish.. however you need to be careful.. if you try to purchase another home, then the new lender might get the perception that you used FHA financing to purchase an "Investment" property, and that's illegal. More than likely the lender will ask for an explanation, and if there was good reason, then you should be ok.. Current IRS rules state that If you sell a home that was your primary residence for 2 of the last 5 years, then you would be exempt on the first $250K in gains for a single individual, or $500K for married.. check with your accountant to see how your particular scenario would apply. Regarding FHA's UFMI, it's pro rated incrementally beginning at 80%, and drops 2% each month until 36 months, 10%. After 36 months, there's no refund. 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. 480-287-5714 WilliamAcres.com

You can sell it at any time. The only time restriction has to do with converting a home from your primary residence to a rental property. In order to avoid having to pay taxes on your profit, the home must be your primary residence for at least 2 of the last 5 years. If you own it for only a couple of months, you will not meet the use test. An accountant can walk you through the numbers. As for the up-front PMI. Uncle Sam wins on that bet. There are no refunds for early payoffs. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

You will need to speak with your CPA regarding the taxes as a mortgage lender may not legally give you tax advice however, the up-front MI will not be refundable unless you were to refinance the property into another FHA mortgage. Upon selling it, you may incur some settlement fees for the actual closing but, you will not have any loan fees with the exception of the cost of ordering the payoff and daily interest on the loan (which should be included in your final payoff amount).

UFMIP is not refundable. As for fees, there shouldn't be any pre-payment penalties and taxes are a question for a CPA.

No taxes or fees are due on the payoff of a FHA loan; none are listed in your mortgage loan note. No refund on the upfront PMI.

Upfront mortgage insurance is non refundable-Taxes- you will need to speak to your financial advisorYou may incur some settlement fees for the closing-Hope this helps,Good Luck,Pete

J. D. Peck (By mortgage) Hit the nail on the head. I couldn't have said better myself.

I believe the upfront Mortgage Insurance is pro-rated over the first 5 years