Multiple FHA Loans At Same Time Mortgage Guidelines
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Multiple FHA Loans at Same Time Mortgage Guidelines


This Article Is About Multiple FHA Loans At Same Time Mortgage Guidelines FHA loans are the second most popular loan program in the United States next to conventional loans. HUD, the parent of FHA, has more lenient mortgage lending guidelines than Fannie Mae and/or Freddie Mac. FHA loans have great benefits for first-time homebuyers, borrowers with higher debt-to-income ratios, and buyers with less-than-perfect credit. HUD allows having more than one FHA loan at the same time under certain circumstances.

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Can I Have Two FHA Loans at the Same Time?

In the event, that a homeowner with an FHA loan needs to move to a distant location more than 100 miles from their existing home with an FHA loan due to job relocation, HUD allows the second home to have an FHA loan. There are many instances where homebuyers need to have a second FHA loan when relocating to a new job.

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Why Homebuyers Choose FHA Versus Conventional Loans

Many homebuyers need to purchase a home with an FHA loan because they may not meet Fannie Mae and/or Freddie Mac’s lending guidelines on conventional loans.
For example, FHA has a shorter waiting period after bankruptcy and/or foreclosure after bankruptcy and/or foreclosure than conventional loans. The waiting period after bankruptcy on FHA loans is two years versus four years on conventional loans.
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Waiting Period After Foreclosure on FHA versus Conventional Loans

There is a three-year waiting period after foreclosure on FHA loans versus a seven-year waiting period on conventional loans after foreclosure. The debt-to-income ratio on FHA loans is capped at 46.9% front end and 56.9% back end.

The maximum debt-to-income ratio on conventional loans is 45%. It is easier to get approve/eligible FHA loans with outstanding collections than it is on conventional loans. Non-QM Mortgage Lenders has helped countless homebuyers qualify for a second FHA loan at the same time due to job relocation.
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Having Multiple FHA Loans At Same Time

Can you have Multiple FHA loans at same time? The answer to having Multiple FHA loans at the same time is YES but under four different circumstances. FHA loans are one of the most popular loan programs in the United States. HUD, the parent of FHA, created and launched FHA loans to promote homeownership to first-time homebuyers and borrowers with less-than-perfect credit and higher debt-to-income ratios. In this blog, we will discuss how borrowers can have multiple FHA loans at the same time.

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HUD Guidelines on Job Transfer and Distance To Travel

Borrowers can have multiple FHA loans At Same Time if they currently own a home but either got a job transfer or a new job. The new job needs to be at least 100 miles or more from the location of the exiting home. A job relocation that is less than 100 miles will not qualify. They do not have to sell the exiting property and keep it as a rental. The new property will require a 3.5% down payment.

Mortgage Guidelines on Multiple FHA Loans at Same Time  

Borrowers and the property need to meet all HUD Guidelines. The housing payments of the exiting property with the FHA loan need to be included in the debt-to-income ratio when qualifying for the second FHA loan. It does not need to be the same job or the same field of work. Borrowers who transfer from their current employer are fine. Also, if they find a different employer, that is allowed as well.

Upgrading To A Larger Home Due To Expansion Of Family

Homeowners with a current FHA loan can have multiple FHA loans at same time if the existing home is too small for their household.  if the homeowner is buying another home due to having a larger family due to more children or combining two households due to marriage, HUD allows having two FHA loans at the same time.

In order to qualify due to a larger family, the exiting home needs to have at least 25% equity. Borrowers who do not have 25% equity can pay down the mortgage balance without refinancing. Expanding family is very common in cases where a borrower may get married to a spouse with many children.

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HUD Co-Borrower Mortgage Guidelines on FHA Loans

If you are a co-borrower on an FHA loan and are leaving the property and the main borrower is keeping the home, you are eligible to qualify for a second FHA loan without the main borrower refinancing. Both home loans will be used as liabilities and may affect the debt-to-income ratios of the borrower when qualifying.

How Many FHA Loans Can I Have at Once?

Mortgage underwriters will calculate both the departing home with the FHA loan and the second home purchase on debt-to-income ratios.

Borrowers who currently own a home with an FHA loan can become a non-occupant co-borrower for a family member with another FHA loan.

How Do I Get Started To Qualify For Multiple FHA Loans at Same Time?

Homebuyers who are looking for a mortgage lender licensed in 48 states with no overlays on FHA loans can contact us at Non-QM Mortgage Lenders at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Non-QM Mortgage Lenders is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans.

Over 75% of our borrowers are folks who could not qualify at other lenders due to the lender overlays. Non-QM Mortgage Lenders has zero overlays on FHA loans. We just go off HUD 4000.1 Guidelines. The team at Non-QM Mortgage Lenders is available 7 days a week, evenings, weekends, and holidays.

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