FHA Loans – How Many Can You Have?
For borrowers with less than perfect credit or a smaller down payment, an FHA loan can be the perfect mortgage for a consumer. If you are looking for financing on investment properties or second homes, FHA mortgages are not going to be an option. The reason why is a consumer can only have one FHA mortgage at a time.
FHA loans are provided by the Federal Housing Administration and while a popular mortgage the restriction is you can only have one. The good news is if you sell your home and buy a new one you can obtain a new FHA mortgage for the new house. There is an exception where you can have two FHA mortgages at the same time where the home you are selling has a mortgage and the home you are buying has an FHA mortgage. The thought process is you probably can’t afford two payments and you need the proceeds from the current home for the new home.
Another exception to having two FHA mortgages would be a divorce situation or when you are cosigning for somebody who is obtaining an FHA mortgage. If you need more than one mortgage your alternative would be to seek out conventional financing.
As always, you should work with a trusted mortgage professional such as the Home Loan Advisors at Hall Financial who can answer all your questions and guide you to the right mortgage for you.