Quiz: Selling the Home Purchased with an FHA Mortgage
March 25, 2025
Is there a mandatory waiting period imposed by the FHA before you can sell a home purchased with an FHA loan?
No, the FHA imposes no mandatory waiting period before you can sell your FHA-financed home.
Does the FHA restrict the pool of potential buyers when selling a home financed with an FHA loan?
No, the FHA does not restrict the pool of potential buyers. In fact, FHA loans often attract a wider range of buyers due to lower down payment requirements and flexible credit criteria.
What is the key difference between an FHA appraisal and a home inspection?
An FHA appraisal focuses on the home's condition and safety to ensure it meets the FHA's minimum property standards. A home inspection is a more in-depth look at the property. Never trust the appraisal alone.
If an FHA appraisal reveals necessary repairs, who is typically responsible for addressing them?
The seller may be asked to address necessary repairs revealed by an FHA appraisal, though this is subject to negotiation with the buyer.
What is the first use of the proceeds from selling an FHA-financed home?
The proceeds from the sale are first used to pay off the remaining balance of the existing FHA mortgage.
Is the Mortgage Insurance Premium (MIP) recoverable when selling an FHA-financed home?
No, the MIP is not refundble unless you refinance an FHA loan within three years of purchase.
Are FHA loans assumable, and if so, what does this mean?
Yes, FHA loans are assumable, meaning a qualified buyer can take the existing loan with the approval of the lender. However, it is not a common practice.
What factors can impact the sale price and time it takes to sell an FHA-financed home?
Market conditions, interest rates, housing inventory, and local market trends can all impact the sale price and the time it takes to sell.
What potential tax benefit might sellers of a primary residence, including those with FHA loans, be eligible for?
Sellers may be able to deduct a portion of their capital gains from the sale of a residence. Check with a tax professional to learn current tax season rules.
What is the primary role of the FHA in the context of home sales?
The FHA's primary role is to facilitate homeownership by providing loan insurance, not to restrict the resale of properties.
What is a good way to prepare a home for sale that was purchased with an FHA loan?
Ensure the home is in good condition and meets FHA minimum property standards, addressing any potential issues before listing.
Why might a buyer be interested in a home that qualifies for an FHA loan?
Buyers are often attracted to FHA loans because of the lower down payment requirements and more flexible credit criteria.
What type of professional can be helpful when selling a home purchased with an FHA loan?
A real estate professional experienced in FHA transactions can be beneficial. What happens if the FHA appraisal is lower than the agreed-upon sale price? Negotiations will need to happen; the buyer may need to bring more cash to closing, the seller might need to lower the sales price, or the deal could fall through.
Does owning an FHA loan prevent you from refinancing into a conventional loan?
No, owning an FHA loan does not prevent you from refinancing into a conventional loan, and doing so will eliminate the MIP.
FHA Loan Articles
January 20, 2025The FHA Streamline Refinance offers a refinance option for those who don't want to cash in on their property's equity but instead want a lower payment or interest rate or who need to get out of an adjustable-rate mortgage. This streamlined program, designed specifically for those already in an FHA-insured mortgage, simplifies the refinancing process with fewer requirements and faster approval times depending on the transaction.
January 16, 2025Want to buy a home and thinking about getting an FHA loan? FHA loans are a great way to make homeownership happen, especially if you're a first-time buyer or don't have perfect credit. But you might wonder, "Can I get more than one FHA loan?"
The short answer is, it's tricky. The FHA itself doesn't say no automatically to having more than one loan. But there's a caveat. FHA loans are about helping you buy a place to live in – your main home base. Because of this, and a few other things, getting multiple FHA loans isn't easy.
January 15, 2025Buying a condo with an FHA loan is an option some don’t consider initially, but it’s worth adding to your list of potential property types. FHA loans for condo units traditionally require condo projects to be on or added to the FHA-approved list. Still, changes in policy over the years allow borrowers to apply for FHA loans on condo units in projects not on the list on a case-by-case basis.
December 30, 2024When applying for an FHA loan, lenders will consider more than just your credit scores and history. They also look at other factors affecting your risk profile and the interest rate they offer you.
One factor is occupancy type. For FHA loans, this is straightforward because these loans require owner occupancy. Investment properties aren't eligible. While conventional loans may have different rates for primary residences, second homes, and investment properties, this isn't a concern with FHA loans.
December 18, 2024Did holiday spending get the better of you? Are you looking for ways to recover your spending plan as you search for a new home?
The holidays are a whirlwind of festivities, family gatherings, and gift-giving. But amidst the cheer, it's easy to lose track of spending. If you're aiming to buy a home in the near future, those extra expenses can have a bigger impact than you might realize, especially if you're considering an FHA loan.
