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Can someone have two FHA mortgages?

I have a FHA mortgage on my primary residence that I have lived in for three years. My husband and I want to rent our home (condo) and purchase another home. Can we qualify for another FHA loan? We would prefer to only have to pay 3.5% down payment.
  • May 01 2013 - Charleston
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Answers (6)

You can have two FHA loans, but with certain exceptions to the rules. 

Conventional loans today offer 3% down payment options, which when compared to FHA, is a better deal than FHA. 

Give me a call to help with this.

Thanks.

  • August 14 2013
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It is like "chalk on a blackboard" to read Agents answer to Mortgage Advice post, however Brian appears to be the exception. If only other agents would do his thorough research before answering mortgage questions, that are mostly above their level of expertise. Better option is spending their time on the Real Estate Advice forum.
user31424218 -  Keeping a property for lease even going conventional is difficult, as most would not qualify with 2 mortgage payment plus condo fee.
  • August 13 2013
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 A borrower may obtain a second FHA loan when one of the allowed extenuating circumstances exists and is documented:

(1) If a borrower is relocating to another area not within reasonable commuting distance. The first property may be kept and maintained as a rental.

(2) If there is an increase in family size which dictates the need for a larger house. However, the current FHA loan must be either paid down or documented with a current appraisal to show a 75% loan-to-value or less.

(3) If the borrower is vacating a jointly-owned property, with the co-mortgagor to remain in the residence (such as in a divorce situation).

(4) A borrower who is a non-occupying co-borrower on property purchased with an FHA loan as a principal residence for other family members may have a joint interest in that property as well as in his or her own principal residence.

In all other cases, the purchasing borrower must either pay off the FHA loan or terminate ownership. FHA is particularly concerned that the program not be used to assist investors in acquiring rental properties with the low down payments and underwriting particular to the FHA loan program. Of utmost importance in each case is the length of time the previous property was owned by the borrower and the circumstances that compel the borrower to seek another FHA-insured residence.

  • August 13 2013
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The FHA does not object to more than one FHA loan if the purpose is for 1) Relocation 2) Increase in family size 3) Vacating a jointly owned property and 4) Non-occupying co-borrower. Shoot me a message if you have additional questions.
  • May 01 2013
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To clarify, the non occupant coborrower is the most common example I have seen for multiple FHA loans to one borrower, but there are other exceptions...

  • May 01 2013
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Fha will allow two mortgages but only in a case where the original loan was a loan you were acted as a nonoccupant coborrower AND the primary borrower is paying the mortgage on time. The son/daughter pays the mortgage for 12 months (from their own funds) then the parent's can qualify for an FHA mortgage for their home. Conventional has gotten more aggressive. If your score is good you may be able to have a similar down payment to FHA.
  • May 01 2013
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