How Many FHA Loans Can I Have At Once?
January 16, 2025
The short answer is that it's tricky. FHA loans are about helping you buy a place to live in – your main home base. Because of this, and a few other things, getting multiple FHA loans isn't easy.
Living There Matters: The Occupancy Rule
The biggest hurdle is that you usually have to live in the home you buy with an FHA loan. It's gotta be your primary residence. There are a few exceptions, like if you're moving for work and can't sell your old place, but generally, you can't use FHA loans for vacation homes or investment properties.
More Than Just Where You Live
Even if you could have multiple "main" homes, there are other things that make getting multiple FHA loans tough:
- Debt-to-Income Ratio: Lenders want to ensure you can afford your loan payments. They look at how much debt you have compared to your earnings. Every time you add a mortgage, it is harder to qualify for another loan.
- Credit Score: Your credit score is like your financial report card. Managing multiple mortgages can be a juggling act, and your credit score can take a hit if you miss payments.
- Lender Rules: Each lender has its own rules about how many FHA loans they'll give to one person, even if the FHA doesn't have a strict limit.
- Money Matters: Lenders want to see that you're financially stable. Multiple mortgages mean you need more cash to cover all those payments, taxes, and potential repairs.
There are a few situations where having more than one FHA loan might be possible. As we mentioned before, if you have to move and can't sell your old place, you might be able to get a new FHA loan for your new home. Also, if you're going through a divorce or separation, each person might be able to get their own FHA loan.
All such scenarios are handled on a case-by-case basis, and you may need to submit additional documentation to have such a loan considered.
While the FHA doesn't flat-out say you can't have more than one loan, it's usually not that simple.
Most of the time, FHA loans are for your main home, and many rules and factors make it hard to get more than one. If you don't have special circumstances like a career change or an adjustment in the size of your family, more than one FHA mortgage may not be possible.
FHA Loan Articles
September 13, 2023FHA rehab loans are a specialized type of mortgage loan offered by the Federal Housing Administration that allows borrowers to finance both the purchase or refinance of a home and the cost of needed repairs.
September 8, 2023Borrowers considering an FHA loan should be familiar with some basic loan terminology. These loans are popular among first-time homebuyers and those with lower credit scores because they often offer more flexible eligibility requirements and lower down payment options.
September 2, 2023You may have heard the terms co-borrower and cosigner in connection with your FHA loan process, but aren't sure about the distinction. Both a co-borrower and a cosigner can help a primary borrower qualify for a mortgage, but they have different roles and responsibilities.
August 27, 2023The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another.
August 23, 2023Mortgage APR (Annual Percentage Rate) and a loan's interest rate are two different things, although they are closely related. Understanding the difference is an important part of a borrower's analysis of the true cost of their mortgage.
