I realize that it doesn’t make the best financial significance to sell quickly after refinancing, but wondering if it’s a requirement that you can’t.
Is There Typically a Requirement from Lenders That You Can Not Sell Your Home for a Year After Refinancing It?
I’ve never heard that and I reckon I did sell my home within a year of refinancing. I wanted to refinance because part of the down payment for my mortgage came from my 401k. I wanted to place that money back before I left the company. I read all the docs before signing, I’d remember if I saw that – because it would have been vital to me. So I know it wasn’t on mine.
Some loans have penalties for early payoff, frequently within the first two years. Read the fine print of your loan documents.
I’ve never seen it on any of our loans, I mean where I work, not my own mortgages. There possibly penalties for paying too soon and there’s frequently a time frame that the property must remain owner occupied, but I’ve never seen anything that says you can’t sell the place. What does the lender care? They get paid anyway. Very few people these days keep the same loan for more than a few years, so the lender generally sells it off straight away; sometimes by the time you get to closing it’s sold. I can’t reckon of any reason we would care about that.
Read the loan agreement. There may be a early payment penalty that can be substantial.
If you have a FHA mortgage they will have some penalties on the profits you make if any on reselling the property that quickly. There is a sliding scale. Check in your loan package or contact hud directly for more info at hud.gov. You should be ok on the resale but remember you will have tax issues if the profits earned is not invested in another primary residence. It is technically income. I would speak with someone that has tax experience. I know that lenders have a clause that requires you to maintain the property as your primary residence for a set period. Again check your loan package. If the lender feels you used them to flip a house there could be legal consequences. I am sure you also have an attorney. They are best to have that flip conversation with. Hope this info helps.