Whether youre a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.580 Credit Score- and only -3.5% Down RELATED ARTICLES
FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
For , the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.
Also for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.
Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.
Buying a new home is always an exciting time. However, it can also be stressful trying to figure out the best way to finance your new place If you currently have an FHA loan on your existing home, you may be wondering if you can transfer it to your new property The answer is yes! Here’s what you need to know about transferring an FHA loan to a new home.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) Some key features of FHA loans include
- Low down payments – only 3.5% required for qualified buyers
- More flexible credit score requirements than conventional loans
- Available for purchasing or refinancing a primary residence
FHA loans are popular among first-time and low- to moderate-income homebuyers because of the easier qualifying guidelines.
Can I Move My FHA Loan to Another House?
Yes, FHA loans can be transferred to a new property through a process called portability. Here’s how it works:
- Your existing FHA loan is paid off when you sell your current home.
- At closing on your new home, the remaining balance and terms of your FHA loan are transferred over to the new property.
This allows you to keep the same FHA mortgage on your next home The benefits include
- Avoiding new loan fees and closing costs
- Keeping the same low interest rate if rates have gone up
- Skipping most of the loan application process
Portability makes moving with an FHA loan simple and cost-effective.
FHA Loan Portability Requirements
To be eligible for FHA portability, you must meet a few basic criteria:
- Occupy the new home as your primary residence
- Close within 12 months of selling your old home
- Meet standard FHA borrower requirements for credit, income, etc.
- Pay off the first mortgage when you sell
- Use the same FHA lender
As long as you meet these stipulations, you can transfer the balance left on your current FHA loan to your new property.
How to Use FHA Loan Portability
Follow these key steps to port your FHA loan to a new house:
1. Find your new home – Your next home must meet FHA property requirements and appraise for at least the unpaid principal balance of your current loan.
2. Get pre-approved – Work with your lender to get pre-approved so you know the exact loan amount you can port.
3. Sell your current home – Pay off your existing FHA mortgage completely when you close.
4. Finalize loan details – Your lender will take care of transferring the remaining loan balance and terms to your new mortgage.
5. Close on your new home – At closing, the ported FHA loan will be applied to your new property.
It’s a straightforward process that saves time and money when moving with an FHA loan.
Benefits of FHA Loan Portability
Porting your FHA mortgage to your next home offers several advantages:
-
Lower closing costs – Avoid fees for a new loan such as origination charges, appraisal, etc.
-
Keep your interest rate – Lock in your current low rate even if rates rise before you move.
-
Skip re-applying – No need to provide updated documents or re-qualify for a mortgage.
-
Fast closing – Closes as quickly as a standard home purchase since securing a new loan isn’t required.
-
Less paperwork – Streamlined process with minimal documents required.
For many homeowners, portability is an easy way to finance a new house while saving time and money.
Porting to a More Expensive Home
What if you want to port your FHA loan to a more expensive house? You have a couple options:
-
Borrow up to 96.5% of the new home’s value – FHA loans allow high loan-to-value ratios for financing.
-
Make a larger down payment – Use your sale proceeds or savings to cover the price difference.
-
Take out a second mortgage – A piggyback loan can cover the gap beyond your ported first mortgage.
As long as you have the income to support the larger monthly mortgage payments, you can port to a higher-priced home.
Pitfalls to Avoid When Porting an FHA Loan
While porting an FHA loan can make moving easier, there are a few potential pitfalls to watch out for:
-
Closing late – The new loan must close within 12 months of selling your old place.
-
Using a different lender – You have to use the same lender that holds your current FHA mortgage.
-
Letting the loan lapse – Be sure to close on time or the loan will have to be re-underwritten.
-
New upfront MIP – If you didn’t already pay it on your old loan, it will be due on the new one.
-
Tapping equity – You can only port your unpaid principal balance, not any equity.
Avoiding these issues ensures the portability process goes smoothly.
Alternatives to FHA Portability
What if porting your FHA loan won’t work for your situation? You still have options:
-
New FHA loan – Qualify and apply for a brand new FHA mortgage.
-
Conventional loan – Consider switching to a conventional loan if you now have more equity.
-
Sell as-is – Sell your home without having a new place lined up.
-
Leaseback – Sell your home but lease it back from the buyer temporarily.
While porting is easiest, it’s not the only way to buy and finance your next home with an existing FHA loan.
Ask Your FHA Lender About Portability
The key takeaway? Yes, you can transfer your FHA loan to a new house! Portability is a valuable benefit for qualifying FHA borrowers. Be sure to ask your lender early on if you’re eligible to port your current loan. They will guide you through the straightforward process. Porting your FHA mortgage saves time, money and headaches when buying your next home.
Frequently Asked Questions about FHA Portability
Many buyers new to the FHA loan process have questions about porting to a new home. Here are answers to some of the most common queries:
Can I port my FHA loan to any lender?
No, you have to use the same lender that currently holds your FHA mortgage in order to port the balance.
Do I need to be current on my old FHA loan to port it?
Yes, your existing FHA mortgage cannot be delinquent or in default to qualify for portability.
Does my new home need to appraise at the full ported amount?
No, it only needs to appraise for at least the unpaid principal balance you are transferring.
What if the new house costs less than my current home?
The principal balance will simply be reduced to match the sales price and loan amount on your new lower-priced property.
Can I port to a different state?
Yes, FHA loans can be ported anywhere in the U.S. where the lender is approved to operate. State-specific lending laws may apply.
Is there a limit on how many times I can port an FHA loan?
No, there is no limit as long as all the portability requirements are met each time you transfer the loan.
Be sure to clarify any other questions with your lender before starting the porting process.
Explore All Your FHA Mortgage Options
Porting lets you take advantage of your existing FHA loan when you buy a new primary residence. But it’s not the only choice. Be sure to discuss both portability and new FHA mortgage options with your lender when planning a move. This ensures you find the most affordable FHA financing for your next home.
FHA Loan Programs for 2024
The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.
Choose Your Loan TypeFHA.com is a privately owned website, is not a government agency, and does not make loans.
Do you know whats on your credit report?
Learn what your score means.
Whether youre a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.580 Credit Score- and only -3.5% Down RELATED ARTICLES
FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
For , the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.
| FHA Limits (low cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $498,257 | $637,950 | $771,125 | $958,350 |
Also for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.
| FHA Limits (high cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.