How to qualify for a second FHA Loan?

Question

FHA loans are amazing for getting a low-interest mortgage and low down-payment. However, these loans are designed for first time home buyers and were not necessarily meant to be used multiple times.

That said, what qualifications/requirements would you need to meet in order to take out a second FHA loan? Is there a limit to how many you can take out?

Wayne Brooks · Answer

FHA is Not just for first time buyers. You are generally allowed to have only one at a time. To get another fha at the same time, you have to meet one of the exemptions.....moving over 50-100 milesfor work, increased family size, etc.

Otherwise you have to refi Out of the fha, typically into conventional, then you can get another fha..

Bradley Padula · Answer

If you pay off your FHA loan or refi into conventional, you no longer have an FHA Loan. You could then get an FHA loan on a new property. I wouldn't think of it as a 2nd, 3rd, etc fha loans. When you pay off or refi an fha to conventional, you re-open the FHA option again as a loan option. You should talk to lender(s)Originally posted by @Jonathan Feliciano:

@Wayne Brooks

So if I’m understanding you correctly, so long as i payback in full my fha loan or refinance it into a conventional mortgage, i can get a second FHA loan?

Is there a limit as to how many times I can do this?

Dylan Thomas · Answer

@Jonathan Feliciano

If you already have an FHA loan, and you want another, you’ll need to refi out of your first fha so that you can get a second one

Nick Riccio · Answer

@Bradley Padula is correct on this. Can only have one FHA loan out at a time. Either a sale or refinance to conventional would make you eligible for FHA again.

Bradley Padula · Answer

An additional requirement that may also apply to those mentioned above is if the reason used for the 2nd fha loan is due to an increase in family size/existing property doesn't meet family needs is having a 75% LTV on the existing property with the fha loan or paid down to that amount, based on the existing loan amount and an appraisal

Jonathan Feliciano · Answer

@Wayne Brooks

So if I’m understanding you correctly, so long as i payback in full my fha loan or refinance it into a conventional mortgage, i can get a second FHA loan?

Is there a limit as to how many times I can do this?

Steve Wilmers · Answer

Also interested to see who can chime in here @Jonathan Feliciano.  I've done some research because I'm curious as well on the specifics.  There's a link below that I have referred to (also can just go to fha.com if you're weary of links) that has information on this topic.  Obviously you'll want to confirm any of this with your lender, but this at least gives you something to prepare with.

The common items in the article are either relocation or an increase in dependents, but it also mentions if the LTV on your first FHA loan is in a good position that will be considered as well.

https://www.fha.com/fha_articl...

How to qualify for a second FHA Loan?

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