An FHA loan is traditionally designed to finance your primary residence, so it seems logical that you would only have one at a time. These loans, which are insured by the Federal Housing Administration, are indeed great options for first-time home buyers, given the requirements that involve low down payments and less-than-perfect credit scores.
There are some exceptions, however, that could allow you to qualify for multiple mortgages on different properties. Exactly how many FHA loans can you have? Read on to learn about the limitations and how to qualify for more than one.
Key Takeaways:
- FHA loans can be used only for primary residences.
- There are four scenarios in which you could qualify for more than one FHA loan.
- You still need to meet the financial criteria for a second home loan.
- Alternative financing options for a second property include a conventional mortgage or a refinance.
How Many FHA Loans Can You Get?
There’s no limit to how many FHA loans you can get over the course of your journey as a homeowner, but there are restrictions related to having two or more at the same time. FHA loans – mortgages that are backed by the U.S. Department of Housing and Urban Development (HUD) – can be used only for primary residences, so you can’t get a second one to purchase an investment property or vacation home. There are some scenarios, however, where you can balance two or more FHA loans at one time, but you’ll need to meet strict eligibility requirements.
On top of those unique situations, which are outlined below, any FHA loan also needs to meet the program’s general requirements. As of March 2026, the loan limit for a one-unit home, for instance, is $541,287 in most areas across the U.S. In high-cost areas (depending on the county), that limit goes up to $1,249,125. In order to qualify for an FHA loan, the home also needs to meet minimum property standards to ensure it’s safe, secure and sound.
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Exceptions For Getting Multiple FHA Loans
If you find yourself in any of the following scenarios, you could apply for an additional FHA mortgage on a new property. These are the exceptions to the only-one-FHA-loan rule, as well as the necessary requirements:
Relocating For Work
You can apply for another FHA loan on another property if you’re moving to a new area for work. The new residence must be at least 100 miles away from your current residence, and the move has to be due to job relocation. Instead of selling your existing home, you can keep it and use an FHA loan to purchase another home in the new area as your primary residence.
What happens if you move back to the area where your original home is located?
You can still own that FHA-financed home without using it as your primary residence. You can finance yet another property with an FHA loan, as long as you meet the same relocation criteria: You moved back for an employment-related reason, and the move is more than 100 miles from your previous residence.
Outgrowing Your Current Home
You can qualify to buy another home with an FHA loan if the size of your family has grown and your current property no longer works. In this scenario, there are two requirements you must meet: First, your growing family must be in the form of legal dependents. (As an example, if your aging parents have moved in with you but you don’t claim them as dependents, they won’t help you qualify for a second FHA mortgage.)
You also need to have at least 25% equity in your home based on a recent appraisal. That means your mortgage balance must be at or below 75% of the home’s current value. Expect to submit evidence of your new family size and an explanation of why your current home is no longer big enough:
- Birth certificates, guardianship papers or marriage certificates that show the increase in family size
- An appraisal that shows the square footage and number of bedrooms in your current home
- A brief letter of explanation that details how your household has changed
Leaving A Jointly-Owned Home
If you took out an FHA loan with someone else, lived in the home together and then decided to move out, you could qualify for a second FHA loan.
The classic example of this would be a couple finalizing a divorce. In this case, you can remain on the mortgage of your previous home and still apply for an FHA on another property. The catch? You can’t have any intention of returning to your old home, and your new property must be used as your primary residence.
Co-Signing An FHA Loan
If you have served as a co-borrower on someone else’s loan but now want to buy your own principal residence, there is a pretty straight path to do that. So long as you don’t live in the original home and use the second home as your primary residence, you can apply for another FHA loan.
That eligibility works in both directions. If you already own a home with an FHA mortgage, you can serve as a co-borrower on another property so long as you don’t intend to live there. However, in order to be considered a co-borrower on the FHA loan, you must be related by blood, marriage or law – or demonstrate a close relationship beyond the loan transaction.
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How To Qualify For Multiple FHA Loans
Even if you meet the eligibility requirements for one of the exceptions, you’ll still need to meet lender criteria for an additional FHA loan.
Debt-To-Income Ratio Including Both Properties
One of the biggest hurdles you need to overcome to qualify for a second FHA loan is the ability to afford both payments. Lenders use your debt-to-income ratio (DTI) to determine affordability. All of your monthly debt payments – including both mortgages, credit card minimums and any other loans or credit lines you have – must total no more than 43% of your monthly gross income. In some cases, you may be able to qualify with a DTI of 50%, but you’ll need excellent credit and significant savings.
New Down Payment
The FHA down payment minimum is 3.5% of the new property’s sale price if your credit score is 580 or higher. Otherwise, you’ll need a 10% down payment if your score is between 500 – 579.
Home Equity In Existing Property
Whether you’re required to have equity in your existing FHA-financed home before taking out a second FHA loan depends on the exception you’re using to qualify. For the increase in family size exception, HUD requires at least 25% equity in the existing property. That means you can’t cash out equity beyond that to put toward your down payment on the new home. For the other qualifying exceptions, the 25% equity requirement does not apply.
Cash Reserves
While an FHA loan for your first property does not require cash reserves, you may need two months’ worth of mortgage payments saved up when purchasing your second property. Your lender typically wants to make sure you can make those monthly payments even if a financial emergency occurs.
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Other Mortgage Options Besides FHA Loans
If you don’t qualify for multiple FHA loans, or simply want to explore other options, there are other forms of financing to consider.
Apply For A New Conventional Loan
Unlike FHA loans, conventional loans come with more opportunities for taking out multiple mortgages. You can get as many as 10 conventional loans for a principal residence, second home and/or investment property. These lenders usually require at least 15% down payment on your home before you can take on an additional mortgage.
On top of that, conventional loans have specific cash reserve requirements, especially when you’re buying a second home or investment property rather than a primary residence.
| Number Of Financed Properties | Required Cash Reserves |
|---|---|
| 1st – 4th second or investment property | 2% of unpaid principal balance and 2 months of mortgage payments |
| 5th – 6th second or investment property | 4% of unpaid principal balance and 6 months of mortgage payments |
| 7th – 10th second or investment property | 6% of unpaid principal balance and 6 months of mortgage payments |
Refinance Your Existing FHA Loan
If you want to apply for an FHA loan with your new property without selling your first property, you could refinance that original loan into another type of mortgage. Refinancing your FHA loan to a conventional loan means you have to meet different lender eligibility criteria, such as:
- DTI of 50% or less
- Credit score of 620 or better
Once you close on your new conventional mortgage, you can then apply for an FHA loan on another home.
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FAQ About Multiple FHA Loans
The Bottom Line: Understand The Rules Surrounding Multiple FHA Loans
Although you’ll need to meet special requirements to qualify for a second FHA loan, there are plenty of financing alternatives available, depending on your situation. No matter what type of mortgage you choose for a second property, you’ll need to meet stricter financial requirements as well.
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Ben Shapiro
Ben Shapiro is an award-winning financial analyst with nearly a decade of experience working in corporate finance in big banks, small-to-medium-size businesses, and mortgage finance. His expertise includes strategic application of macroeconomic analysis, financial data analysis, financial forecasting and strategic scenario planning. For the past four years, he has focused on the mortgage industry, applying economics to forecasting and strategic decision-making at Quicken Loans. Ben earned a bachelor’s degree in business with a minor in economics from California State University, Northridge, graduating cum laude and with honors. He also served as an officer in an allied military for five years, responsible for the welfare of 300 soldiers and eight direct reports before age 25.
