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
February 26, 2021Many Americans go with FHA loans because there are a number of mortgage programs that can fit different needs. These programs include FHA Fixed Rate Loans, FHA Adjustable Rate Mortgages, FHA One-Time Close Loans, FHA Condo Loans, and several others.
February 21, 2021The new year came with some changes being made in the mortgage industry, particularly when it comes to Adjustable- Rate Mortgages, or ARMs. The interest rate you get with an ARM is based on an index and a margin which is disclosed when you apply for the loan.
February 6, 2021As an existing homeowner, you may want to take advantage of falling interest rates by refinancing your current mortgage. For many homeowners, the thought of going through the refinancing process can be tiresome. But an FHA Streamline Refinance could help you avoid the extra work.
January 30, 2021As your closing day gets closer and closer, you might start to feel a little nervous. Do you have everything you need? Will something delay the closing? These worries are natural, but the more prepared you are, the less overwhelming it will all seem.
January 16, 2021What you may not know that there are many different types of refinances and different benefits that come with them. The cash-out refinance, or cash-out refi, is one that many borrowers opt for, for several reasons.
