How Many FHA Loans Can You Get? A Guide to FHA Loan Limits

The FHA loan program, backed by the Federal Housing Administration, makes homeownership more accessible and affordable for many borrowers. FHA loans require lower down payments and have more relaxed credit requirements compared to conventional loans. But you may be wondering – how many FHA loans can you get at once?

The general rule is that you can only have one FHA loan at a time. However there are some exceptions that allow borrowers to qualify for more than one FHA loan simultaneously. In this comprehensive guide, we’ll walk through everything you need to know about getting multiple FHA loans.

Overview of FHA Loan Program

First. let’s go over some key details about FHA loans

Down payment: Only 3.5% down payment required for credit scores 580+
Credit score: Minimum 580 FICO score
Usage: Must be used for primary residence, not investment property
Mortgage insurance: Required on all FHA loans

FHA loans offer flexible credit and down payment options for eligible borrowers. However, they do place limits on how many you can have at once to prevent misuse for real estate investing

Can You Get More Than One FHA Loan?

In most cases, you can only have one FHA loan at a time. This policy aims to restrict investors from exploiting the loan program’s low down payment option.

However, there are special circumstances where you may qualify for multiple simultaneous FHA loans:

Relocating for a new job: If your new job and home are not within reasonable commuting distance, lenders may approve a second FHA loan.
Divorce: If awarded the marital home in divorce, your ex-spouse may qualify for a new FHA loan for their own housing.
Increased family size: With 25% equity in current home, you may qualify for second FHA loan if existing house is too small.
Cosigning: Cosigning an FHA loan for a family member won’t necessarily disqualify you from having your own existing FHA mortgage.
Refinancing investment properties: You can refinance multiple investment properties with FHA loans, as long as your primary residence has FHA financing.

While multiple FHA loans are allowed in limited cases, you’ll need to prove you can afford both mortgage payments. Your total debt-to-income ratio typically cannot exceed 43%.

Tips for Qualifying for Multiple FHA Loans

To improve your chances of getting approved for more than one FHA loan, here are some helpful tips:

Have excellent credit: Aim for at least a 720 FICO score to demonstrate your creditworthiness.
Make large down payments: Putting down more than 3.5% shows lenders you’re financially committed.
Have substantial reserves: Lenders often want to see up to 12 months of mortgage payments in reserves.
Keep debt low: Don’t take on new debts before applying for multiple FHA loans.
Use low DTIs: Keep your total monthly debts below 36% of income if pursuing two FHA loans.

Meeting these standards makes you a very low-risk borrower in lenders’ eyes.

Alternatives to Multiple FHA Loans

If you don’t qualify for more than one FHA loan, here are some alternative options to consider:

Conventional 97 loan: Only 3% down payment required, with less strict rules than FHA.
VA loan: No down payment required for eligible military borrowers. Can be used for investment properties.
USDA loan: 100% financing available in designated rural areas for low-income borrowers.
Refinance cash-out: Withdraw equity from current FHA loan to use as down payment on second non-FHA loan.

These programs may provide similar benefits to FHA without the restrictions on multiple loans.

Current FHA Loan Limits

FHA loans have maximum loan limits that cap the amount you can borrow. Here are the current 2023 nationwide FHA loan limits:

Property Type	Maximum Base Loan Limit
1-unit	$420,680
2-unit	$538,650
3-unit	$651,050
4-unit	$814,500

Specific metro areas can qualify for even higher FHA loan ceilings. You can check your county’s exact loan limits on the FHA website.

The Bottom Line

While qualifying for multiple FHA home loans is challenging, it may be possible in certain situations like relocation or growing family size. Improving your credit, keeping debts low, and making larger down payments can help your chances. If you don’t qualify for two FHA loans, alternative low down payment mortgages may be suitable alternatives.

Key Statistics:

You can typically only have one FHA loan at a time
Exceptions allow for multiple FHA loans when relocating, divorcing, or expanding family
Need minimum 580 credit score and 3.5% down payment for FHA loan
Must keep total DTI below 43% to qualify for two FHA loans
Maximum FHA loan limits range from $420,680 to $814,500

Can You Get An FHA Loan Twice?

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FAQ

Can you have two FHA loans at once?

Can you have more than one FHA loan at the same time? FHA mortgage loans were created to help people purchase a primary residence. This is the reason behind why, generally speaking, borrowers are not allowed to have multiple FHA loans at one time.

How many times can you apply for an FHA loan?

While there’s no limit to how many FHA mortgages you can get during your lifetime, you can generally only have one FHA loan at a time because you can only have one primary residence. This restriction helps keep the loan program – and its lenient requirements – from being used to purchase investment properties.

Can you get another FHA loan if you sold your house?

FHA allows you to only have one loan at any given time. Therefore, if you plan to sell one home and buy another, you may do so as long as you are paying off the existing FHA loan in order to purchase your new home with yet another FHA loan.

What is the highest FHA loan limit?

That means the FHA loan limit is $498,257 in low-cost areas and $1,149,825 in high-cost areas. The FHA is also required by law to set the loan limit at 115 percent of the median home sale price, subject to the national floor and ceiling.

How many FHA loans can you have?

Because in the vast majority of cases, you can only take out one FHA loan at a time. Let’s explore in detail just how many FHA loans you can have. The Federal Housing Administration insures FHA mortgage loans. They’re popular home loan options for borrowers who want to make a low down payment.

What are the requirements for an FHA loan?

FHA loans have a set of requirements you must meet in order to qualify for an FHA loan. These include: The home must be your primary residence. You must have a minimum credit score of 500 (though most lenders require 580+).

How many states can you get an FHA loan in?

To be considered for our “best overall” pick, lenders had to be able to issue mortgages in at least 35 states. An FHA loan is a mortgage insured by the Federal Housing Administration. Learn more about FHA loan requirements and compare offers.

What credit score do you need for an FHA loan?

Low credit score requirements: You may be able to qualify for an FHA loan with a credit score as low as 500. However, most lenders require a minimum score of 580, which is still lower than the conventional loan minimum of 620. The higher your credit score, the more favorable your loan terms will likely be.