According to FHA guidelines, you can have more than one loan backed by the Federal Housing Administration (FHA). There are strict rules, though. These rules are about the residency of each home. They might limit how many FHA loans you can have.
When might you qualify for multiple FHA loans? You could be moving for a new job. Or, you might need a bigger home for a growing family. Even in cases like getting a divorce, where your spouse keeps the house.
You can also be a cosigner on someone else’s FHA loan. Or use it to buy a HUD real-estate owned property. If you’re refinancing, you can refinance more than one home with FHA loans. But, one home must be where you live primarily. The others are treated as investment properties.
It’s important to understand these rules to know your options. Let’s take a closer look at how FHA loan limits are set. And what you need to qualify for multiple FHA loans.
Key Takeaways:
- There are situations where you can qualify for multiple FHA loans, such as relocating for a new job opportunity or needing a larger home for a growing family.
- Strict rules regarding the residency of each home may limit the number of FHA loans you can have.
- FHA loan limits are established annually and vary by county, based on a percentage of the Fannie Mae and Freddie Mac Conventional Loan Limits.
- While there is a loan limit for FHA loans, it is possible to get an FHA mortgage for an amount higher than the limit depending on your financial qualifications.
- Alternative loan options like Fannie Mae HomeReady loans, Freddie Mac Home Possible loans, VA loans, and USDA loans are available for those not eligible for multiple FHA loans.
How Are FHA Loan Limits Determined?
FHA loan limits decide how much you can borrow with an FHA home loan. They change every year and by county. This adapts to different costs of living in various places.
FHA loan limits are a part of Fannie Mae’s and Freddie Mac’s loan limits. These entities help make mortgages available. This connection makes sure mortgage lending follows a common approach.
For homes with multiple units, like duplexes, loan limits are usually higher. This is great for those interested in investing or renting out. It gives more options to buyers.
What if you need more than the limit to buy your home? You can still get an FHA mortgage that’s bigger. But, this means you’ll need to be in good shape financially. A higher credit score might also be needed. An FHA Jumbo Loan could be the answer in these situations.
In 2020, an FHA loan could fund up to $331,760 for a home in most areas. But this number changes. It could go up to $765,600 in places where things cost more. Remember, these limits shift based on where you’re looking to buy.
In more budget-friendly areas, the loan limits are usually less. This is because homes cost less there. Always check what the loan limits are in your specific area. This helps you figure out how much you can borrow.
Knowing the FHA loan limits can guide you in buying a home. It lets you make smart mortgage choices. These limits keep you on track and help you get the most out of your loan.
FHA Loan Limits by County
Here is an example of what loan limits could be in some U.S. counties:
| County | Single-Family Home Loan Limit (2020) |
|---|---|
| Los Angeles County, CA | $765,600 |
| Cook County, IL | $510,400 |
| Harris County, TX | $331,760 |
| Maricopa County, AZ | $331,760 |
Remember, these numbers are just for example. The current amounts might be different where you are. Always check the latest FHA loan limits for your area.
Qualifying for Multiple FHA Loans and Alternatives
To get more than one FHA loan, you must meet minimum mortgage standards from FHA-approved lenders. These standards like credit score, debt ratio, and how much you put down are checked. Lenders will also look at your chances of repaying many FHA loans.
If you can’t get another FHA loan, don’t worry. There are other choices. For instance, try Fannie Mae HomeReady or Freddie Mac Home Possible loans. They have almost the same down payment rules. These loans are for people with low incomes, helping them buy a home.
Are you in the military or married to someone who is? Then VA loans might be for you. They offer really good deals and are easier to get. USDA loans are great for buying a house with no down payment in rural areas.
Thinking about more than one FHA loan, be sure to check out all your options. Talk with a pro in mortgages to help you understand everything. The right help can lead you to a choice that fits your financial goals and helps your dream of owning a home come true.
What are the limitations and restrictions on getting multiple FHA loans?
When it comes to obtaining multiple FHA loans, there are certain limitations and restrictions to consider. One of the FHA loan downsides to consider is that the borrower can generally only have one FHA loan at a time, as they are intended for primary residences only. Additionally, there are strict guidelines for income and credit requirements.