Can I Get an FHA Loan if I Already Own a Home?

If you’re in the process of buying a second home and looking for a finance option, you’re likely considering whether you can get an FHA loan for your second home. The answer is yes, but it can be slightly more complicated than the first time.

This guide will explore getting an FHA loan on a second home.

Is It Possible to Get a FHA Loan For a Second Home?

FHA loans are popular finance options for first-time buyers because of their lower credit scores and down payment requirements. But these loans can also be used a second time, even if you already own a home with an FHA loan, without being penalized for getting a second loan.

Reasons You May Qualify as a Second-Time Borrower

While FHA loans are only for borrowers who will use the home as their primary residence, there are some exceptions:

1. You’re not living in your home

If you’re no longer living in the home you purchased with an FHA loan for reasons like divorce and needing to move out, the FHA might make an exception.

2. Relocating for work

If you’re moving from your primary home because of work reasons, you may qualify for a second FHA loan if your new home is at least 100 miles from your current one. This 100-mile rule is very important.

3. You outgrew your existing home

If your family has grown and you need more space, the FHA may consider this reason enough for another FHA loan. This is a case-by-case basis, so you need to be able to prove your existing home does not meet your family’s needs.

This exception only applies if your family expanded after you purchased your home.

4. You’re a non-occupying co-borrower

A non-occupying co-borrower is someone who is listed on the mortgage loan but has no intentions of living on the property. If this is you, you may still qualify for your own FHA loan if you plan to make the property your primary home.

5. Vacation homes

In areas where a conventional loan is unavailable, the FHA may approve a second FHA loan for a vacation home. You should be aware that this is rare and on a case-by-case basis.

FHA Second-Home Borrower Requirements

To qualify for a second FHA loan, you still have to meet the standard requirements like:

A lower DTI of 43%
Minimum 580 credit score
Have a stable income and employment history
Proof you can afford both loans

Get In Touch With Your Mortgage Experts in CA Now

Are you ready to purchase a second property with a 3.5% down, affordable interest rates, and easy credit qualification requirements? Contact the Granite West Funding team at (559) 540-2275 to start your application or schedule a free consultation.

Melissa De Graaff

21:27 17 Oct 24

We cannot say enough wonderful things about working with Eric Wood at Granite West Funding. We went into the situation not knowing much about the process. Eric helped us (while educating us) every step of the way!! We highly recommend Eric and his entire team, they were all fantastic, hardworking and a very kind group of people!!

Krissi O

13:52 08 Jul 24

Granite West has been our "go to" on several occasions and never disappoint! Quick results and always professional! Highly recommend!!!

Tammi Chumney

17:22 14 Feb 23

My husband and I just bought our first investment property and it is fabulous!!It was a very unique situation that demanded a lot of precise attention to details. Eric Wood was there every step of the way! Him and his team at Granite West funding are amazing professionals and very kind hearted people to work with. :) I just can’t say enough about our seamless experience with Eric Wood. Thank you to Jackie as well! We will be a regular clients for future investments and lending needs. Big thank you to you all from the Chumney’s!!

Sherry Andersen

01:02 10 Feb 23

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Melissa McGregor

15:23 18 Nov 19

We recently executed a long distance purchase of a Condominium at Bass Lake, from the Los Angeles area. Granite West Funding handled our funding and walked us through the process via phone calls, text messaging and e-document signing, all of which helped get us closed in 30 days. Even with a snafu in the execution of escrow, Granite West Funding went above and beyond to resolve our problem in a more than satisfactory manner! These professionals care about their clients and their business reputation, and it showed! Thank you Granite West Funding!