Can someone have more than one FHA loan at a time?

FHA Mortgage Lenders will not insure more than one Property as a Principal Residence for any mortgage applicant, except as noted within. FHA Mortgage Lenders will not ensure a Mortgage if it is found that the transaction was designed to use FHA Mortgage Lenders mortgage insurance as a vehicle for obtaining Investment homes, even if the Property to be insured will be the only one owned using FHA Mortgage Lenders mortgage insurance.

Properties previously acquired as Investment Properties are not subject to these restrictions.

Listed below are the only circumstances in which a Borrower with an existing FHA Mortgage Lenders-insured Mortgage for a Principal Residence may obtain an additional FHA Mortgage Lenders-insured Mortgage on a new Principal Residence:

• RELOCATION – FHA mortgage applicants may be eligible to obtain another FHA -insured Mortgage without being required to sell an existing Property covered by an FHA Mortgage Lenders-insured Mortgage if the Borrower is:

Relocating or has relocated for an employment-related reason; and establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence.If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA Mortgage Lenders-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.

• INCREASE IN FAMILY SIZE – FHA mortgage applicants may be eligible for another house with an FHA Mortgage Lenders-insured Mortgage if the Borrower provides satisfactory evidence that:
  – the Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and
  – the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.

• VACATING A JOINTLY-OWNED PROPERTY – A Borrower may be eligible for another FHA Mortgage Lenders-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-Borrower.

• NON-OCCUPYING CO-BORROWER – A non-occupying co-Borrower on an existing FHA Mortgage Lenders-insured Mortgage may qualify for an FHA Mortgage Lenders-insured Mortgage on a new Property to be their own Principal Residence.

  For additional information see Handbook 4000.1 II.A.1.b.iii.(A) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh