Reply
Established Contributor
Posts: 756
Registered: ‎01-20-2012
0

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
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: Question on loans / penalties for selling early?

not that I know of.

Community Leader
Super Contributor
Posts: 6,647
Registered: ‎03-06-2010
0

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.

Established Contributor
Posts: 756
Registered: ‎01-20-2012
0

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
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.