Can I have 2 Loans for an FHA Mortgage?

FHA mortgage loan is one of the types of mortgage options guaranteed by the government. It was established in order to help moderate to low income families to obtain a loan for a house purchase. This type of mortgage loan has a more lenient underwriting process and eligibility requirements compared to the other types of loans. This particular type is meant to assist marginalized people own a home. Basically, a mortgage loan is approved for only one purpose – home ownership. An individual can only acquire one FHA mortgage loan ideally.

However, for every rule there is always an exception and for FHA mortgages, there are a few of them. The following sections will try to discuss each of these exceptions.

Family Size

This is the most common reason for people applying and eventually getting an approved second FHA mortgage loan. When a family becomes too big for a previously loaned home purchased under FHA mortgage, the family can apply for another one. As easy as it seems, one needs to prove beyond any reasonable doubt that the house in question is too small for the family. As such, supporting documents as proof should be produced.


FHA mortgage loans also allow two individuals to share as co-borrowers for a home purchase. This is especially applicable for married couples. This makes paying for the monthly manageable when both are working. When the couple goes through a divorce, however, the spouse who left the house will be given another chance to apply for an FHA loan. Another instance in which an individual can file for another FHA guaranteed mortgage loan is when he had assisted another family member to obtain such as a co-borrower. This person is also entitled for another FHA mortgage loan.


Another exception to the rule by FHA is when a person gets relocated for any reason other than company related moves. In this instance, a person is given another chance to apply for another mortgage loan under the FHA. However, the new location should be beyond travelling distance from the previous one. It also must be made clear that the move was not caused by an employer’s request. This is to avoid people from requesting their companies to move them to another branch in order to be eligible for this loan.

There are other general requirements needed to be complied in order to be granted a second FHA guaranteed loan. Borrowers must be able to ensure that the first FHA loaned property will not be utilized for investment purposes other than home rentals. Additionally, the borrower should present money allocated for supporting the first loan in the event that the rental contract is cancelled.