Special Situations: Four Exceptions to the FHA’s One-Loan Rule

FHA loans are intended to finance a primary residence. In general, this means that you can’t hold two FHA loans at the same time.

Or can you? Many Pennsylvania borrowers are surprised to hear that a few exceptions to the one-loan rule imposed by the FHA exist. At MortgageDepot, this doesn’t surprise us at all. We are well-versed in these exceptions, and we want to share our knowledge with you!

Are you eligible to hold two FHA loans at the same time? Let’s find out! Here are four situations where the FHA bends their strict one-loan limitation:

• Relocation
  If you need to relocate for employment reasons, you might be eligible to receive a concurrent FHA loan. You must use the loan for a primary residence, and it must be located more than 100 miles away from the original home.
• Increase in family size
  If you have outgrown your original home due to a significant increase in legal dependents, you might qualify for a second FHA loan. Keep this in mind: You won’t get approved for that second FHA loan simply because you want a bigger home. You must demonstrate that your original home cannot reasonably accommodate a family of your size. Your experienced MortgageDepot loan officer will help you with this!
• One borrower permanently vacates a jointly-owned residence
  If one borrower moves out of a property with no intent to return (such as in a divorce), that borrower might be able to secure a second FHA loan. In most cases, the original property must remain occupied by the other borrower.
• Non-occupying co-borrowers
  If you are a non-occupying co-borrower on an FHA loan, you can typically use a second FHA loan to purchase a primary residence.

Applying for a mortgage is complicated, but MortgageDepot makes it easy! If you need a mortgage in Pennsylvania, MortgageDepot is your one-stop shop for an array of programs to serve even the most hard-to-qualify clients. Connect with us today to find a mortgage that helps you reach your homeownership goals!

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