Can you really have 2 FHA loans at the same time?

Can I really buy a second home with the FHA?

Country houseFHA loans were established to assist home buyers purchase a property with a modest down payment (now 3.50 percent), allowance for gift funds, and seller-paid closing expenses.

There is one stipulation: FHA loans are not available to investors.

The FHA insures properties with one to four units, and home purchasers must occupy the home within 60 days of closing and must occupy the home continuously for at least one year.

Two FHA Loans Exceptions

INCREASE IN FAMILY SIZE – A borrower(s) may be eligible for a second home with an FHA-insured mortgage if the borrower(s) can show that:

  • the borrower's legal dependents have grown, and the home does not meet their needs; and
  • the current principal residence's loan-to-value (LTV) ratio is equal to or less than 75 percent or is paid down to that amount, based on the outstanding FHA mortgage balance and a current residential appraisal.

The FHA underwriter may request documentation of an increase in the number of dependents, as well as the inability of your current house to meet your family's needs.

Young familyNON-OCCUPYING CO-BORROWER – Co-borrowers on an existing FHA-insured mortgage, who do not occupy the property, may be eligible for another FHA-insured mortgage on a new property that will serve as their primary residence.

Borrowers with an FHA-insured mortgage on their primary house may be qualified to co-borrow on additional FHA-insured mortgages as non-occupying co-borrowers.

RELOCATION – If a Borrower meets the following criteria, he or she may be qualified to receive another FHA-insured mortgage without having to sell an existing FHA-insured mortgage:

  • has established, or is establishing a new primary dwelling located more than 100 miles from the borrower's current (primary) residence; and
  • moving or has moved for an employment-related reason.

Provided the relocation meets the two conditions above, the borrower is not required to live in the original house if the borrower moves back to the area and may obtain a new FHA-insured mortgage on a new principal residence.

VACATING A JOINTLY-OWNED PROPERTY – If a Borrower is vacating (with no intention of returning) the principal residence that will be occupied by an existing co-borrower, the Borrower may be eligible for another FHA-insured Mortgage.


In conclusion, it is possible to have two FHA loans at the same time; provided you meet one of the exceptions above. FHA loans are a great option for those who are looking to buy a home, and they can be a helpful tool in the home buying process.