Yes, you can pay off your FHA loan without a penalty for early pay off. HUD explains that a borrower may pre-pay an FHA mortgage in whole or in part and that the mortgage lender can't charge a penalty if you decide to do this.
Now is the time to drop the interest rate on your 30-year mortgage or refinance into a 15-year home loan.
NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.
- Improving Your Credit Score Has Never Been More Important -
The FHA Loan is the type of mortgage most commonly used by first time home buyers and there's plenty of good reasons why.
FHA.com is a privately-owned website that is not affiliated with the U.S. government. Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting. FHA.com is a private corporation and does not make loans.
Purchase or refinance your home with an FHA loan. You can get one with a down payment as low as 3.5%. Browse through our frequent homebuyer questions to learn the ins and outs of this government backed loan program.
FHA Loans are the #1 loan type in America with 11.41% of all single-family residential mortgage originations and #1 market share for first-time home buyers at 82.84%.
Source: Department of HUD 2019 Annual Report