How Many FHA Loans Can You Have at Once

Jun 27, 2024

FHA loans, backed by the Federal Housing Administration (FHA), serve as a gateway to homeownership for many Americans, particularly first-time buyers and those with less-than-perfect credit scores. 

These loans are favored for their lower down payment requirements—often as little as 3.5%—and more lenient credit score requirements compared to conventional loans. However, a common question arises: Can one hold multiple FHA loans simultaneously?

Table of Contents

How Many FHA Loans Can You Have at Once

  1. Can You Have Multiple FHA Loans?
  2. What Are the Exceptions to the Rule?
  3. What are FHA Loan Requirements to Qualify
  4. What Are the Challenges of Having Multiple FHA Loans
  5. Conclusion
  6. FAQs

Can You Have Multiple FHA Loans?

The foundational rule of FHA loans is straightforward: typically, only one FHA loan per primary residence is allowed. This limitation ensures that the program remains available to those who need it most—first-time homebuyers or those without significant equity.

Yet, life’s unpredictable nature means there are exceptions to this rule. The FHA acknowledges certain situations where individuals may find themselves eligible for more than one FHA mortgage. Understanding these exceptions is important for those who might find themselves in unique circumstances.

signing papers

What Are the Exceptions to the Rule?

Here are the three most common exceptions to this rule:

  • Relocation for Work

If your job relocates you and your new workplace is more than 100 miles from your current home, you may qualify for an additional FHA loan. This exception is designed to ease the burden for homeowners who need to move far for work but want to maintain ownership of their original property. 

It’s important to note that lenders will require documentation of the relocation and employment details to ensure compliance with FHA guidelines.

  • Increased Family Size

Families grow, and so do their living space needs. If you find that your current home no longer fits your expanding family size, the FHA might approve a second loan. To qualify under this exception, you’ll need to provide evidence of your increased family needs, like birth certificates or other legal documents. 

This proof helps establish the necessity for a larger primary residence, making you eligible for a second FHA mortgage.

  • Divorce

Divorce can necessitate sudden changes in living arrangements. If you are separating from a spouse who will remain in the home financed by an existing FHA loan, you might be eligible for another loan to purchase a new primary residence. 

Lenders typically require a copy of the divorce decree and proof that the departing spouse has moved out to process this exception.

How Many FHA Loans Can You Have at Once

What The Requirements To Quality For an FHA Loan?

  • Debt-to-Income Ratio (DTI)

The debt-to-income ratio is a metric used by lenders to determine your eligibility for additional FHA financing. This ratio compares your total monthly debt payments to your gross monthly income. 

For those seeking multiple FHA loans, maintaining a DTI that is within acceptable limits is vital. The FHA generally recommends a DTI no higher than 43% for borrowers, although there can be some flexibility depending on other compensating factors. This requirement ensures that you are not over-leveraged, reducing the risk of defaulting on your loans.

  • Credit Score and Down Payment

Your credit score and the amount you can put down as a deposit are also significant when securing an FHA loan. Typically, a credit score of at least 580 is required to qualify for the FHA’s low down payment advantage, which is usually around 3.5% of the home price. 

If your credit score falls between 500 and 579, you may still qualify for an FHA loan, but a 10% down payment is typically necessary. These factors are even more critical when you are applying for multiple FHA loans, as they demonstrate your financial reliability and commitment to maintaining good financial health.

  • Equity and Down Payment Requirements

Having sufficient equity in your current home can also play a pivotal role in qualifying for a second FHA loan. For instance, if you’re looking to purchase a new primary residence while retaining your current FHA-financed home, you might need at least 25% equity in your existing property. 

This equity ensures that you have enough financial stake in your first property, thereby providing a buffer for the lender.

What Are the Challenges of Having Multiple FHA Loans?

Here are the challenges and pitfalls of having multiple FHA loans presented in bullet points:

  • Maintaining multiple FHA loan payments can significantly impact your budget, potentially straining your financial resources.
  • Every FHA loan requires mandatory MIPs, both as an upfront cost at the closing of the loan and annually.
  • These insurance premiums increase the overall cost of owning multiple properties financed through FHA loans.
  • FHA loans often require smaller down payments, which can slow the rate of equity build-up in the property.
  • A slower equity build-up can be problematic during market downturns, potentially leading to underwater mortgages (owing more than the property’s value).

a person handing over keys


While FHA loans offer a path to homeownership with their lenient credit score requirements and holding multiple FHA loans simultaneously is generally restricted to specific exceptions. It’s crucial for potential borrowers to evaluate their financial situation thoroughly and consider alternative financing options if the constraints of FHA loans don’t align with their needs.


  • Can I use an FHA loan to purchase investment properties?

No, FHA loans are intended for primary residences only. You cannot use an FHA loan to purchase investment properties. 

  • What happens to my existing FHA loan if I move out of my primary residence?

If you move out of your primary residence, you are typically required to convert the property’s FHA loan to a conventional mortgage or find another qualifying primary residence solution. FHA loans have occupancy requirements that you must meet to maintain the loan.

  • Are there any specific documents required to prove eligibility for a second FHA loan due to family size increase?

Yes, you will need to provide documents such as birth certificates or adoption papers to prove that your family size has increased, necessitating a need for a larger primary residence.

  • How long do I need to wait after purchasing with an FHA loan to qualify for another one due to relocation?

There is no specific waiting period required; however, you must prove that the relocation is work-related and over 100 miles away from your current primary residence to qualify for another FHA loan.

  • Can FHA loans be assumed by another buyer if I sell my home?

Yes, FHA loans are assumable, meaning a buyer can take over your loan under the same terms, subject to lender approval. This can be a selling point in a high-interest rate environment, as the loan would typically offer a lower rate than current market rates.


Rob’s Mortgage Loans – Your Trusted FHA Loan Specialist

→ Best Rates from Our Wide Range of Lenders

→ Negotiation Expertise

→ Time and Stress Savings

Get an FHA Loan in Denver, CO today →

⭐⭐⭐⭐⭐ Rated 4.9/5 by Thousands of Satisfied Homebuyers

About Rob Sturms

With over three decades of experience, Rob Sturms is a trusted name in Colorado’s mortgage industry. Since 1993, he has been guiding clients with honesty and expertise through various loan options, ensuring personalized solutions for each homeowner’s journey. As the founder of Rob’s Mortgage Loans, Rob’s commitment to transparency and tailored service makes him the go-to choice for reliable lending assistance.


Related articles

Conventional Loan Home Condition Requirements 

Can You Have Two VA Loans At The Same Time?

How to Secure the Best Mortgage Interest Rates