Can a borrower have more than one FHA mortgage at a time?

In normal situations HUD allows only one FHA Mortgage loan per borrower. Below are four unique exceptions to this rule.

 

1) Increasing Family Size- If the borrowers current residency no longer meets the families needs due to an increase in the number of legal dependents then the borrower is allowed to obtain another FHA insured mortgage loan and purchase a new house while renting or selling the existing home with an FHA mortgage loan.

 

2) Jointly Owned Properties-If one borrower is leaving the home secured with an FHA mortgage and the co-borrower is staying in the home, then borrower is permitted to purchase a new home with an FHA mortgage, if qualified, while still being on the note of the first home loan.

 

3) Non-Occupant Co-borrowers - A non-occupant co-borrower is allowed to own a home with an FHA mortgage and co-sign on the purchase of a home using FHA financing.

 

4) Relocation - If a borrower is relocating for employment purposes and is not going to sell their home that has an existing FHA mortgage that person may be eligible for a second FHA mortgage loan