Can I Have 2 FHA Loans at the Same Time?

An FHA loan is a loan under the services of the Federal Housing Administration (FHA) and you can have two FHA loans at the same time, if you meet the requirements to do so. The program was created by the government to enable home owners to qualify for and to occupy their own home. Since you can only occupy one home at one time, the program is not set up to allow for more than one loan. There are exceptions to almost every rule, and in this case, the FHA does allow some leeway.

You can have 2 FHA loans at the same time if you own a home that is financed through one of the government backed programs and you need to relocate. You can buy a new home when you move to your new location and you can keep the other home that was your primary residence as a rental. The new home must become your primary residence and it must be far enough away from the old home to be considered too far to commute. You can relocate for any reason. You do not have to qualify because you were military and transferred or because your employer relocated you to another place. You can just move to another location, but it must be considered a primary residence when you do move.

Another exception that allows you to have 2 FHA loans at the same time is if your family has outgrown your home and you must relocate to a larger house. Your family size must increase and you cannot relocate to another home just because you want something bigger. You will purchase your new residence with FHA money and you can keep your smaller home as a rental. You must be able to document the increase in your family size in order to claim the exemption. You must also have an appropriate loan-to-value (LTV) ratio. The original FHA loan cannot be greater than 75% LTV. You will have to have an appraisal of the current market value of the loan in order for the FHA to have the documentation that shows the LTV.

If you get a divorce and you are a joint owner of an FHA home you can get another mortgage but you must remain a joint owner. Your new loan with the FHA must be for your new primary residence. If a family member asks you to co-sign a note for their FHA home you can do so. You must be in your own home that is covered with an FHA mortgage in order to qualify as their co-signer. This must be for a member of your family. As you can see, you can have 2 FHA loans at the same time under different circumstances that are approved by the FHA.