Online Mortgage Calculator

If you are qualified, Can you have more than one FHA loan? The Federal Housing Administration (FHA) was created to help home owners who could not qualify for traditional mortgages become home buyers. The program was designed for the lower income borrower and the buyer who was purchasing his first home. The FHA guarantees the loans so even if you have a credit score or a history that would keep you out of the traditional home loan market, you will be eligible for a loan backed by this agency. In 1934, the government designed this agency so that more buyers would be eligible for loan money for a home. Increasing home ownership was a priority. The borrower would only have to have 3 ½ % of the value of the home saved for a down payment. If the borrower had an FHA loan already and want to renegotiate the terms of the loan then a new loan for up to 96% of the fair market value of the home could be accomplished.

You will have to meet the requirements of the FHA if you can have more than one FHA mortgage. The lenders will not be too willing to take a risk that you can make the payments on more than one loan. With the latest crisis in the job market, a lot of people began to have trouble making their loan payments and they faced default and foreclosure. The lender will evaluate your ability to repay by determining your debt-to-income ratio. This means that you will provide the lender with verification of your income and your debt. He will then divide the debt by the income to arrive at a ratio. Depending on this percentage, the lender will decide whether you would be a good risk for another loan. If both loans will total more than 40% of your income, you will probably be declined.

You can have more than one FHA mortgage if the lender has evaluated your financial situation and determined that you have sufficient income to make the higher payments. Also, if your family size has increased and you can no longer fit comfortably into your old home, the FHA will approve a loan for a larger house. You would essentially have two loans because you would have to continue to make payments on the smaller home until you sold the home.

You will have to give permission for the loan officer to check your credit report and your credit score. You should have a minimum score of 580. Traditional lenders will require a minimum score of 650. You will have to have verifiable proof of income for a period of two years. Your income will have to be increasing. You will have to have excellent credit since filing bankruptcy and you will have a waiting period to serve before you can be approved for an FHA loan. You can have more than one FHA mortgage, but you will have to have the income and meet other eligibility requirements before your application will be approved.