Typically FHA allows 1 FHA loan at a time. However that rule is not the end all be all. In fact, FHA allows borrowers more than 1 FHA loan in certain cases.
More Than 1 FHA Loan Allowed
While FHA rules state a borrower may have just 1 FHA loan at a time, there are 4 scenarios under which FHA will grant an exception to that rule allowing multiple FHA loans. The 4 exceptional scenarios are:
- Re-locations – Borrowers relocating to an area not within reasonable commuting distance from their current FHA financed home
- Increase in family size – When the number of legal dependents increase and the current FHA financed is no longer suitable for the families larger size
- Vacating a jointly owned property – When a borrower leaves a FHA financed home they co-own with another borrower
- Non-Occupying Co-Borrower – A borrower may act as a non occupying co-borrower on someone else’s FHA loan even if they themselves already have an FHA loan.
Most importantly, each of these exemptions is evaluated on a case by case basis by an FHA underwriter. Additional conditions typically apply.
More information is always available on HUD/FHA’s official webiste
By Jeremy House