To sell a house purchased with a Housing Fund Loan, first contact the lender to confirm repayment terms and penalties for early sale. Pay off the loan in full or negotiate a sale with the lender’s approval. List the property through a real estate agent, disclose the loan details to buyers, and ensure compliance with local real estate laws. Close the transaction through a licensed attorney or escrow agent after confirming all payments are settled.

The process requires strict adherence to lender requirements to avoid penalties or legal issues. For example, Housing Fund Loans often impose early repayment fees of 3-5% of the remaining balance if sold within a set period, as reported by the U.S. Department of Housing and Urban Development (HUD). Selling without lender approval can result in lawsuits or repossession. Data from the National Association of Realtors (NAR) shows 22% of homeowners with government-backed loans face delays or additional costs due to improper sale procedures. Additionally, properties tied to Housing Fund Loans typically take 25-35% longer to sell than conventional mortgages, per Fannie Mae’s 2023 report, due to buyer hesitancy about loan complexities. Proper coordination between lenders, real estate professionals, and legal advisors minimizes risks and ensures a smooth closing.