The FHA loan program offers married couples a low down payment option to buy a home together But if you already have an FHA loan, can you and your spouse get another one? Generally, the answer is no – you can’t have two FHA mortgages at the same time However, there are some special exceptions.
Overview of FHA Loans
FHA loans are government-backed mortgages insured by the Federal Housing Administration, Key features include
- Down payments as low as 3.5% with a 580+ credit score
- Lenient credit requirements – minimum 500 FICO score
- Loans for primary residences, not investment properties
By requiring only a small down payment, FHA loans make homeownership attainable for many couples. But to prevent abuse of the program, there are restrictions on the number of FHA loans a borrower or married couple can have simultaneously.
FHA Loan Limits for Married Couples
The general rule is that you can only have one FHA loan at a time. This applies to both individual borrowers and married couples. Since FHA loans are for primary residences, you can’t use them to buy multiple investment properties.
However, in certain special cases, a married couple may qualify for two FHA mortgages at the same time:
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Relocating for a new job: If you must move far away for a new job, you may qualify to take out a second FHA loan before the first is paid off.
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Divorce: If awarded the marital home in a divorce, your spouse can get a new FHA mortgage for their own residence.
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Family size increase: A much larger family may qualify for a second FHA loan if their current home is now too small. At least 25% equity is usually required in the first home.
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Cosigning: You can cosign on an additional FHA loan for a family member while keeping your own. This adds risk if they default.
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HUD home purchase: Investors can buy a HUD home with an FHA loan even if they have another FHA mortgage.
Meeting the strict FHA guidelines for two simultaneous loans is difficult for most couples. It’s risky to juggle two mortgage payments.
Qualifying for Two FHA Loans
To get approved for two FHA mortgages, married couples must prove they can handle both payments:
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Credit scores: Minimum 580 score for 3.5% down loans, or 500 for 10% down
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Debt-to-income ratio: Total monthly debt under 43% of gross monthly income
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Down payments: At least 3.5% down if 580+ credit score, 10% down if 500-579
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Mortgage insurance: Upfront and annual premiums required on each loan
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Reserves: Most lenders want savings to cover a minimum of two mortgage payments
These tough standards make obtaining two FHA loans at once rare for married couples.
Alternatives to Multiple FHA Loans
If getting two simultaneous FHA mortgages won’t work, consider these options instead:
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Conventional loan: If finances have improved, you may now qualify for conventional financing with fewer restrictions.
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Sell first home: Sell current FHA property and use proceeds to pay off that loan before getting a new one.
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Cash-out refinance: Refinance existing FHA loan and take cash out to use as down payment on a second conventional mortgage.
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Other programs: Fannie Mae and Freddie Mac offer low down payment options like HomeReady and Home Possible loans.
Putting Only One Spouse on FHA Loan
Many married couples wonder if they can get an FHA loan in just one spouse’s name. This is allowed, but consider a few key points:
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Non-borrowing spouse may still need to sign paperwork due to state property laws
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Debts of non-borrowing spouse often must be counted in debt-to-income ratio if in a community property state
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Non-borrowing spouse retains ownership rights in the home unless they legally relinquish them
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Adding only the higher-earning spouse to the loan can help couples qualify
Discuss the pros and cons with your lender before putting just one partner on an FHA application.
The Bottom Line
While you can have multiple FHA loans over your lifetime, generally you can only have one at a time. This prevents misuse of the program. Rare exceptions for two simultaneous FHA mortgages exist but are hard to obtain. Explore conventional mortgages or other low down payment programs for more flexibility.
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Can You Get an FHA Loan Without Your Spouse
Is a FHA loan for a married couple?
Unlike government backed loans such as Fannie Mae loans the FHA views married couples jointly. This means joint responsibility and joint liabilities. FHA Loans require the lender pulls credit on the debt of the spouse even if the spouse is not on the mortgage. So she is not on the mortgage application.
Should both spouses apply for an FHA home loan?
When it’s time to apply for an FHA home loan, both spouses often want to buy together–it’s a logical financial step for many couples, old and new. However, not every couple comes to the FHA loan process with equal credit, employment history, or income. There are a variety of questions these couples bring to the FHA loan process.
Can you get two FHA loans at the same time?
Sell your current home. You can use the proceeds from selling your home to pay off your original FHA loan before you apply for an additional FHA mortgage. While you can qualify for two FHA mortgages at once, that’s the exception to the FHA loan rule. In most cases, you can’t have two FHA loans at the same time.
Can I refinance more than one home with FHA financing?
You can have multiple FHA loans at the same time, but at least one of the homes must be your primary residence. Any other homes with FHA loans must be refinanced as investment properties. You may be able to get a new FHA loan on an FHA-financed home you’ve since converted to an investment property, with the following restrictions: