Can A Person Have More Than One FHA Loan?

A person may certainly have more than one FHA loan.  Many people feel that an FHA loan may be obtained just once.  It is a popular misconception, especially here in CT where we have such a great first time buyer mortgage program CHFA.  Most CHFA loans are FHA loans at heart, just offered to borrowers at the CHFA rate.  So if you sell your home which has an FHA mortgage you may get another FHA mortgage loan.

But there is also another question, can a person have more than one FHA loan at a time?  The answer there is also yes, as long as you fit one of FHA's allowed situations.  What are those allowed situations?

Relocation.  If a person is relocating and re-establishing residency in another area not within reasonable commuting distance from their current home, they may obtain an FHA loan on their new primary residence where they relocate.

Increase in family size.  Additional legal dependents and the current house no longer meets the family needs is another situation where a person may have more than one FHA mortgage.  In this situation the original loan must be paid down (already or through a one time payment) to 75% of the properties current market value.

Moving out of a jointly owned property.  Usually occurs in a divorce where one of the spouses moves out of the prior marital home.

Non-occupying Co-Borrower.  Sorry for the mortgage speak, basically a co-signer.  An example would be if parents co-signed for their child's mortgage.  Co-signing would not stop mom and dad from obtaining an FHA mortgage on their primary residence just because they had cosigned for their child.

Can a person have more than one FHA loan?  Certainly.

If you have any questions about this article, feel free to contact me at 860-306-8029.

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