Can I pay off my FHA loan early without being penalized or charged a fee?

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. You can find this information in HUD 4155-2 (Chapter 3), also called "Lender's Guide to the Single Family Mortgage Insurance Process."

There is a provision for people who obtained their mortgages before 1985 that requires 30 days written notice in order to avoid an extra month's interest. However, few if any people are still in mortgages that old, so it is not likely to apply.

Did you find this question helpful?