Can You Get an FHA Loan Twice?
FHA loans are for individuals who have a small down payment and potentially low credit scores who wish to purchase or refinance a primary residence.
FHA loans are not just for first time home buyers and there are no restrictions which will prevent you from getting an FHA loan twice.
You may use FHA insured financing to purchase a primary residence as often as you want. However, there are restrictions if you want to have two FHA loans open at the same time.
Why Would You Get an FHA Loan Twice?
There are reasons why FHA loans are popular and is the mortgage that is chosen by so many home buyers. They help when you have a small down payment, low credit scores, or high debt to income ratios.
These situations may still be a reality for you when you are ready to buy your second, third, or fourth home.
Another scenario you may encounter is that your family has outgrown the home that you currently live in. If you decide to keep the home you live in now with an FHA loan as a rental property, you will need to meet one of the two requirements:
- Move at least 100 miles away. This is called the 100 mile rule.
- Provide documentation showing that your family has grown, the current home is too small, and the new one better suits your needs.
The decision to allow you to have two loans at the same time will come down to the decision of the underwriter.
Qualifying for an FHA Loan Twice
If you are trying to qualify for an FHA loan twice, you will need to meet the basic requirements to be approved for an FHA loan. They are as follows:
- Two year work history
- Credit score of at least 500
- Fully document your income
- Down payment of at least 3.5%
- No recent bankruptcies
Another requirement that could prevent you from getting an FHA loan twice is late mortgage payments. You cannot have late payments on your current FHA loan if you want to apply and get approved for another one.
If you are looking to get approved for an FHA loan, we can help you no matter how many times you have had one. Please complete this short quote form and someone will contact you today to review your options.