Typically, a single FHA loan is allowed per person, but there are some cases where two FHA loans can be taken to buy a new home. This is usually the case when a family’s size has expanded, and another home is required to ensure everyone’s living comfortably. In fact, this is one of the few cases that a family can take out more than one FHA loan at any time, whereas normally, you’ll have to pay off the existing FHA loan first before getting another. In other words, HUD, the parent of FHA, has put into place exemptions that allow people to take out multiple FHA loans at any given time.

That being said, let’s delve deeper into obtaining more than one FHA loan for an expanding family and understand what to expect if you are interested in doing so:

FHA Loans

If you aren’t sure what an FHA loan is, it is a type of loan backed up by the Federal Housing Administration and is insured by them. For this reason, the loan is incredibly easy to get and be approved for, even for those with a bad and low credit score. In fact, those with a credit score of 580 down to 500 can apply for an FHA loan, given they make up to a 10% down payment.

How to Apply for Another FHA Loan

There are many exceptions given by HUD that allow you to obtain more than one FHA loan at any given time. First, if you are transferring jobs over a hundred miles from your original house, you can obtain a new loan to buy another home. Second, if you wanted to buy a new home but still wanted to keep the existing one, you can turn it into a rental and still continue paying off the FHA loan for that house. Third, you can obtain another FHA loan to purchase a home if your family has become too big for the current home to meet your needs comfortably. It is this third reason that you are allowed to obtain another FHA loan for expanding family size.

Delving a little deeper into the third reason, if you have a home that already has an FHA loan, but you need a larger house because the family has gotten bigger, you can obtain another one thanks to HUD. An excellent example of this is a home meant for a couple, such as a home with two bedrooms and only one bathroom. Now, when that couple has children and a few pets, that home will no longer suffice, and a larger home is needed. Under HUD guidelines, you can obtain another loan for a larger home because of increased family size!


It is good to know that when your family’s expanding all of a sudden, you are eligible for a second FHA loan to obtain a larger house for the family. That said, if you have any troubles or concerns trying to obtain another FHA loan, we highly recommend that you reach out to lending experts who work with FHA loans. They can help you understand what it takes to qualify for a second FHA loan and can even work with you to ensure that you are eligible for another loan to meet your expanding family’s needs.

NetLending is a top wholesale mortgage broker offering a one-stop-shop solution to quickly help individuals find the right mortgage. If you are looking for FHA home loans in Santa Ana, CA, chat with us today!