Introduction
When it comes to obtaining a mortgage, the Federal Housing Administration (FHA) loan program is a popular choice for many homebuyers. One common question that arises is how many times an individual can get an FHA loan. In this article, we will explore the guidelines and limitations surrounding the number of times one can obtain an FHA loan.
Understanding FHA Loans
Before delving into the specifics of how many times you can get an FHA loan, it is essential to understand what an FHA loan is. The FHA loan program is designed to make homeownership more accessible for individuals who may not qualify for conventional loans. It is insured by the Federal Housing Administration, which allows lenders to offer more favorable terms to borrowers.
Primary Residence Requirement
One of the key factors to consider when determining how many times you can get an FHA loan is the primary residence requirement. FHA loans are intended for owner-occupied properties, meaning they are designed for individuals who plan to live in the home as their primary residence. Therefore, the primary residence requirement limits the number of FHA loans an individual can obtain.
One FHA Loan at a Time
Generally, an individual can have only one FHA loan at a time. This means that if you already have an existing FHA loan, you would need to pay it off or refinance it before obtaining another FHA loan. However, there are a few exceptions to this rule.
Exceptions to the One FHA Loan Rule
Relocation: If you are relocating due to a change in employment and your new home will be outside of reasonable commuting distance from your current residence, you may be eligible for an additional FHA loan. This exception allows you to keep your existing FHA loan and obtain a new one for your new primary residence.
Family Size Increase: If your family has outgrown your current home and you need a larger property to accommodate your growing family, you may be eligible for an additional FHA loan. This exception allows you to keep your existing FHA loan and obtain a new one for a larger primary residence.
Non-Occupying Co-Borrower: Another exception to the one FHA loan rule is if you are a co-borrower on an existing FHA loan but do not live in the property. In this case, you may be eligible to obtain your own FHA loan for your primary residence.
It is important to note that these exceptions are subject to certain criteria and requirements. It is advisable to consult with a mortgage professional to determine your eligibility and understand the specific guidelines.
Conclusion
In conclusion, the number of times you can get an FHA loan is generally limited to one at a time. However, there are exceptions to this rule, such as relocation, family size increase, and being a non-occupying co-borrower. It is crucial to understand the primary residence requirement and consult with a mortgage professional to determine your eligibility for multiple FHA loans.
References
1. hud.gov
2. fha.com
3. investopedia.com
