Time frame for selling a house after refinance

missymarJune 28, 2007

We have some extenuating circumstances..... but does anyone know if you have to wait 2 or 3 months after refinancing a house before you sell it?

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missymar

Sorry, I posted twice!

    Bookmark   June 28, 2007 at 1:46PM
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housekeeping

I think you can resell it immediately since ownership and financing are separate things.

You loan agreement will spell out whether you can prepay (that's essentially what you're doing when you sell and pay off the loan with proceeds of the sale).

That said, you will not recoup as much financial benefit from the refi because you will not have had it as long.

But you said there was some exigency, and that tops all other considerations.

Good luck!

Molly~

    Bookmark   June 28, 2007 at 8:45PM
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rrah

One caveat--if it was an FHA refinance--unlikely really--there is some rule (or at least there was in the past) regarding appraisals less than 6 months old. The old appraisal still would be in place. I'm not a lender so I cannot really speak to specifics, but just know enough to know to question quick resales that originally used FHA loans. The BEST source of information is YOUR mortgage documents. That is really where you will find your answer.

    Bookmark   June 28, 2007 at 10:41PM
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etznab

There is nothing that can ever stop you from trying to sell your house at any time. It's possible that your loan has a prepayment penalty and it will cost you xtra to sell so soon ... but if you can pay the penalty, yes you can sell.

FHA is leery of homes that are resold quickly after refinance or initial purchase - but this affects the potential buyer who is trying to use an FHA loan, not the seller and not another buyer who has another type of financing. FHA's concern is that an unscrupolous seller makes a huge profit on a house that may of only had a cosmetic repair done and is now quickly being sold at an inflated value. FHA actually places a cap on how much "profit" a seller can make in a short period of time. I don't remember if it's the cap is in place for 3 months or 6 months. But even then, the cap is fairly large in my opinion and really only affects professional flippers.

    Bookmark   June 29, 2007 at 7:14AM
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