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Profile picture for ggggurgle

Sell current home (has FHA loan) & purchase new home with FHA loan?

Current home has FHA loan, have lived in it more than a year and still paying MIP on it, would like to sell and buy new primary residence using FHA loan. Is this possible if current home sale closes on, say Monday morning and close on new home later that day? Use money from sale of current home as 3.5% downpayment. Hopes this make sense.
  • February 24 2011 - US
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Answers (5)

Yes!

Your loan approval will be conditioned on you closing the sale of your home. Once you close and fund, the title company will submit the proof to your lender and they will authorize the title company to fund your home purchase.

It will be best to use the same title company. Remember, you have a legal right to choose your title company.
  • February 24 2011
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Profile picture for Connie Klemme
Yes, it can be done but it can be a nerve racking experience for the buyer.  You'll want to have good communication with your lender and your agent. 
  • February 24 2011
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Crazier things have happened. 

I wouldn't be surprised if you don't experience turbulence due to the fact that some of the conditions from your sale will need to clear some of the conditions of your purchase.   It will only take one of the simultaneous activities to fall thru that could jeopardize the event.

Timing is the key.
  • February 24 2011
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Yes you can. Good luck!
  • February 24 2011
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Profile picture for tdefazio
Yes, this should be fine.
  • February 24 2011
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