Why would someone have two FHA loans at the same time? Here are the reasons and the exceptions that may allow someone to have 2 concurrent FHA Loans.

  • Increase in family size – There must be an increase in family size in which their current house can’t support the new family member(s). You will have to prove the increase. Also, you must have 25 percent equity in your current home or pay it down to 75% LTV (loan-to-value).  An FHA approved appraiser must be used to determine such new value.
  • Relocation – If the borrower is relocating and it is established that they aren’t in reasonable distance from their current property. Keeping in mind that reasonable can be defined differently from any lender.

Note – If that borrower(s) returns back to the same area, they are not required to re-establish residency in that property in order to have another FHA insured mortgage.

  • Vacating a jointly owned property – A borrower my leave a property and be eligible for another FHA loan if the co-borrower is to stay in the same property that is being vacated.

A good example of this is because of a divorce and that the vacating spouse needs to buy a new home.

  • Non-Occupying co-borrower – If someone previousily co-signed for a family member or relative while using a FHA loan.  This type of FHA loan is called a non-occupant co-borrower loan. This borrower would still be eligible to purchase their own home using a FHA mortgage.

Without meeting any of these requirements, a potential borrower would not be approved for a second FHA insured loan.

About the Author

Jeff is a seasoned mortgage banking professional with over 18 years of experience in the industry both as a loan officer and a manager working for Infinity Home Mortgage in Cherry Hill, NJ.

  • Homes in Drexel Hill PA for sale

    Some great insight to FHA loans. Lately it seems hard enough getting one FHA loan, let alone two! The lending underwriting requirements have become incredibly strict.

  • Jeff Belonger

    Home in Drexel – thanks for the compliment. I know that some deals for many have been harder to close… but as long as I have the credit scores and I set my borrowers up correctly, I am still not having any issues. Besides, we are taking another step in making this easier for our borrowers, and to get around lender overlays. We will be selling our loans directly and go down to 600… and it will be based on common sense underwriting. And just a FYI.. we can do loans in PA also. I am also putting together a gathering of realtors and other real estate professionals in a few weeks in Philadelphia. Let me know if you would be interested. thanks, Jeff

  • John Cannata

    Great information Jeff! Its not known by many if there are ‘any’ options available for having two FHA loans. Nicely done here.

  • Drew


    how likely are underwriters to approve each of these situations in today’s tough lending environment?

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  • Kevin Benner

    In regards to taking out a loan out on a second home, are you seeing increased scrutiny on the part of lenders due to some homeowners buying a second home only to walk away from the under water mortgage on their first home.

  • Josh Russell

    What if someone bought an home with an FHA loan, then their girlfriend buys an another home (still living apart). Then they marry after a few years. This would be another way that one family could have two FHA loans? Thanks again for the info above it was very imformative. As a real estate agent in Philadelpihia and one of the few legal credit repair companies in the city this info will be very helpful.

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