FHA loans are typically restricted to buyers who plan to live in the residence they purchased. You generally can have only one FHA loan. However, there are some exceptions to this rule, such as relocation for work, a significant increase in family size that your current home can’t accommodate, or if you’re cosigning for someone else’s FHA loan and are now buying your own property. In all cases, you must meet the lender’s financial requirements for a second mortgage, including having sufficient income to cover two payments and potentially having at least 25% equity in your existing home. 

Breaking Down FHA Loan Myths: How Many Can Fit Your Financial Goals? Discover the Possibilities!

The FHA program is intended for owner-occupied primary homes, not investment properties, so you generally can’t have multiple active FHA loans for different principal residences simultaneously. However, you can have a second FHA loan for a new principal residence if you’re relocating for employment and the new location is more than 100 miles from your current home. You can also have multiple FHA loans over your lifetime, not just at the same time, by first selling the property that was purchased with an FHA loan. An FHA loan is one of the easiest to qualify for because of its low credit and down payment requirements.

Did you know? Borrowers with a credit score as low as 580 can qualify for FHA financing with 3.5% down. In 2025, the highest FHA loan limit is between $524,225 and $1,209,750 for single-family homes.

Here is your step-by-step guide to FHA loan limits, requirements, and exceptions to the rules.

• Relocation for Employment

You may qualify for a second FHA loan if you’re relocating for work and your new principal residence is more than 100 miles away from your current one, and you have a legitimate, employment-related reason for relocation.

• Increased Family Size

If your family has grown and your current home no longer meets your needs, you may qualify for a second FHA loan. You’ll be eligible if the increase in family size happened after you bought your home. You’ll need to prove that you have at least 25% home equity.

• Leaving a Joint Mortgage due to Separation or Divorce

If you’re leaving a jointly owned property in the aftermath of a divorce or a separation, and the co-owner plans to stay in the same home, you may be able to get your own FHA loan.

• Non-Occupancy Co-Borrower

If you cosigned an FHA loan for another family member and the original borrower remains in the home, but you want to buy your own home now, you may become eligible to purchase your own home with FHA. Being a non-occupancy co-borrower does not necessarily disqualify you from getting your own loan.

Fast fact FHA will not finance investment properties, second homes, vacation homes, or flips (a property purchased within 90 days of a prior sale). Properties must be primary residences, and the FHA requires the buyer to move into the property within 60 days of closing.

• Financial Considerations for a Second FHA Home

• You must demonstrate to your lender that you have the necessary payment to afford both mortgage payments.

• You may need to have at least 25% equity in your current home.

• How to Qualify for Multiple FHA Loans?

To qualify for multiple FHA loans, you’ll need to meet minimum mortgage requirements based on your creditworthiness, debt-to-income DTI ratio, and down payment amount:

Credit score	DTI ratio	Down payment	CAIVRS check
580 with 3.5% down, down500 with 10% down	43% maximum for both loans combined	3.5% with 580 + credit score 10% with a 500-579 credit score	No delinquent federal debt, including existing FHA loans.

Conclusion

While FHA loans are typically limited to one loan per borrower, there are certain exceptions to this rule. Whether you are relocating due to work or leaving the joint mortgage due to divorce, whether your family has grown in size or you were a non-occupancy borrower before and plan to buy your own home now, you still have options with FHA lending. Knowing the rule about exceptions opens up a world of possibilities for homeownership. You need to work closely with an FHA lender to see if your situation qualifies for an exception and to ensure you meet all financial requirements.

FAQs

Who is an FHA loan ideal for?

FHA loans are a pathway for homeownership for borrowers with less-than-ideal credit scores and relatively low down payment funds on hand.

What is the most common FHA loan?

The FHA 203(b) loan is the most common type, ideal for purchasing primary residences. This is what people are commonly referencing when they talk about an FHA loan.

What is the maximum closing cost on an FHA?

Closing costs for FHA loans are generally between 2% and 6% of the loan amount.