Can a person have 2 FHA mortgage loans?
FHA mortgage lenders will not insure more than one Property as a Principal Residence for any FHA mortgage applicant, except as noted below. FHA mortgage lenders will not ensure a Mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining Investment Properties, even if the mortgage to be insured will be the only one owned using FHA mortgage insurance.
Properties previously acquired as Investment Properties are not subject to these restrictions.
Listed below are the only circumstances in which an FHA mortgage applicant with an existing FHA-insured Mortgage for a Principal Residence may obtain an additional FHA-insured Mortgage on a new Principal Residence:
INCREASE IN FAMILY SIZE – A FHA mortgage applicant may be eligible for another house with an FHA-insured Mortgage if the FHA mortgage applicant provides satisfactory evidence that:
– the FHA mortgage applicant 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.
Properties previously acquired as Investment Properties are not subject to these restrictions.
Listed below are the only circumstances in which an FHA mortgage applicant with an existing FHA-insured Mortgage for a Principal Residence may obtain an additional FHA-insured Mortgage on a new Principal Residence:
INCREASE IN FAMILY SIZE – A FHA mortgage applicant may be eligible for another house with an FHA-insured Mortgage if the FHA mortgage applicant provides satisfactory evidence that:
– the FHA mortgage applicant 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.
RELOCATION – A FHA mortgage applicant may be eligible to obtain another FHA-insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the FHA mortgage applicant 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 FHA mortgage applicant’s current Principal Residence.If the FHA mortgage applicant moves back to the original area, the FHA mortgage applicant is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.
VACATING A JOINTLY-OWNED PROPERTY – A FHA mortgage applicant may be eligible for another FHA-insured Mortgage if the FHA mortgage applicant is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-FHA mortgage applicant.
NON-OCCUPYING CO-FHA mortgage applicant – A non-occupying co-FHA mortgage applicant on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own Principal Residence.
– 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 FHA mortgage applicant’s current Principal Residence.If the FHA mortgage applicant moves back to the original area, the FHA mortgage applicant is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.
VACATING A JOINTLY-OWNED PROPERTY – A FHA mortgage applicant may be eligible for another FHA-insured Mortgage if the FHA mortgage applicant is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-FHA mortgage applicant.
NON-OCCUPYING CO-FHA mortgage applicant – A non-occupying co-FHA mortgage applicant on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own Principal Residence.
