Can You Have Multiple FHA Loans at the Same Time?

Yes, you can have more than one loan backed by the Federal Housing Administration (FHA) at a time. However, FHA loans aren’t designed for borrowers who want to purchase multiple homes for real estate investment purposes. You’re generally required to live in each home as your primary residence, and this places a practical limit on how many FHA loans you can have.

Below, we cover the occupancy rules that — in certain special cases — allow FHA loan borrowers to take out multiple FHA loans.

Can you get an FHA loan twice (or more)?

FHA loans are typically restricted to buyers who plan to live in the home they purchase. However, once you’re living in a home financed by an FHA loan you may need to move. If you want to move into a new home purchased with another FHA loan, you can — but you’re usually required to sell your current home first.

FHA guidelines do allow you to borrow multiple FHA loans — without selling your existing home — but only in very specific situations.

Exceptions that allow for multiple FHA loans

You can purchase multiple homes with FHA loans under the following circumstances:

Job relocation

• You’re relocating for a new job opportunity. This is common if your new job takes you to a different state and you haven’t been able to sell your current home. However, the new home has to be more than 100 miles away from your current home.

Growing family size

• You need a bigger home for a growing family. You’ll need to prove that your household has grown and that you have at least 25% home equity. That could mean paying the mortgage balance down to 75% of your home’s value, or choosing a different loan type, like a conventional loan.

Divorce (separation from co-owner)

• You’re separating from a co-owner, and that person is staying in the current home. You may be asked to certify that you have no intention of returning to the home.

Co-borrowing and cosigning

• You were a co-borrower for someone else’s FHA loan but now you want to buy your own home. The only catch with this option is you’ll have to qualify for your new loan with the other payment counted against you, unless you can prove that the payments were made by the person you cosigned with.
• You’re cosigning an FHA loan. If you just want to cosign a new FHA loan without being a co-borrower, you can do that — you’ll have to sign the mortgage note but you won’t have to take title. If you already have an FHA loan and want to become a co-borrower on a new FHA loan, you may be required to make at least a 25% down payment.

How to qualify for multiple FHA loans

FHA-approved lenders will review your loan application to make sure you have the ability to repay more than one FHA loan at the same time. You’ll need to meet minimum mortgage requirements to qualify for an FHA loan based on your creditworthiness, debt-to-income (DTI) ratio and down payment amount:

Alternatives to taking out multiple FHA loans

Fannie Mae HomeReady® loans

Low-income borrowers with a minimum 3% down payment and 620 credit score may qualify for Fannie Mae’s HomeReady mortgage program.

Freddie Mac Home Possible® loans

The Home Possible down payment requirements and income limits are the same as Fannie’s HomeReady program, but you’ll need a higher minimum credit score (660) to qualify.

VA loans

The U.S. Department of Veterans Affairs (VA) backs loans for eligible military borrowers and their spouses. No down payment or mortgage insurance is required. The VA doesn’t set a minimum credit score requirement, but many VA-approved lenders require at least a 620 credit score.

USDA loans

Low- to moderate-income homebuyers in designated rural areas may qualify for no-down-payment financing with a loan guaranteed by the U.S. Department of Agriculture (USDA).