Expert: liznarr - 12/16/2009

Question
Hi, I have an FHA Loan and live in CT, I would like to sell my house to buy another house that is less expensive to have a lower mortgage payment, I have had this house for three years in March 2010. I have fallen behind on my bills since the economy has gone down and if I sell this house I will make money to pay those bills and to have a down payment on a less expensive house, but I would like to know if I am able to sell my house with an FHA Loan to purchase a cheaper house and still have an FHA Loan. I heard something that I have to have had this house for five years before I sell? Is this true? And do you think I will be able to get another loan if my house sells and if my credit is not so good?
Thanks so much

Answer
Hi Rachel,

You are wise to investigate the answers to your questions above before selling your current home.

I do not try to stay current on FHA guidelines because they change so often now, and I am not an expert in the mortgage lending field.  I would suggest that you direct your questions to a lender who handles FHA loans to make sure you get accurate and up-to-date answers.

Here are a couple websites you can visit to read more information on FHA loans:

http://www.fha.com/

http://promotions.bankofamerica.com/firsthome/?mhi=5&ti=fha-loan&subCampCode=904...

Sorry I wasn’t able to help you, but feel free to write again if you have other questions.

Regards,
Elizabeth