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Question on loans / penalties for selling early?

Established Contributor

Question on loans / penalties for selling early?

Background:  Eventually I will buy my parents house.  It's a hous that started in our family and has not left our family.  I imagine this will be in 10-15 years. 

 

I would like to buy my first home (credit rebuilding currently, trying to get ducks in a row) in the next year. 

 

That said, are there programs I need to be aware of that would penalize me for selling within 10 or 15 years? 

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
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Valued Contributor

Re: Question on loans / penalties for selling early?

not that I know of.

Message 2 of 4
Moderator

Re: Question on loans / penalties for selling early?

It is fairly rare to see restrictions on the sale of property you own. I have seen a penalty imposed if the financing you choose has a pre-payment penalty for a specified period of time. Again, that is not common now, but it does exist.

 

Another restriction of the sale is a short term restriction that is typically invoked by a bank owned home restricting your sale for X days (90 to 180 days is typical). If you sell during that period then there is a specified penalty applied. The one that comes to mind right away is the fannie mae restriction for X months (IIRC) and a penalty of $10,000 if you sell early.

 

However, with the time lines you are talking about, years, I have never seen a restriction for that long. A pre-payment penalty, yes. But again, that is rare.

Message 3 of 4
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Established Contributor

Re: Question on loans / penalties for selling early?

Thank you both!

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
Message 4 of 4