Is it Possible to Buy Two Homes Using an FHA Mortgage? It seems like a tough question, but the answer is yes! You can defintely purchase two houses using an FHA loan. However, you must meet certain conditions and qualifications to do so. (!)
The first requirement is that you must have sufficient income to support both mortgages. If your earnings are too low, then it wouldn't be possible for you to make payments on two homes at once. Additionally, you may need to provide proof of steady employment in order to show that you'll be able to keep up with the payments for both properties.
Furthermore, the second qualification involves having enough cash available for down-payments and closing costs.
What is the Process of Securing an FHA Loan for a Second Home? The procedure of protecting an FHA lending for a second house includes conference specific qualification needs, picking an authorized loan provider, providing necessary documentation, and completing the lending application and approval process.. Normally with an FHA loan, a borrower doesn't have to put down more than 3% of the total purchase price of each home. This means if you're buying two homes simultaneously, then your total cash outlay would be 6% or higher depending on the cost of each property.
Finally, there's also a limit on how much money can be borrowed when using an FHA mortgage loan. Typically this amount is capped at $625,000 per dwelling unit purchased — meaning that if your combined purchases exceed this number then it wouldn't be possible for you to use this type of funding option.
Overall, while it's not impossible to buy multiple dwellings with an FHA mortgage loan — there are still several criteria that need to be met before doing so. Be sure that you understand all these requirements beforehand so as not avoid any surprises further down the line!
How to Buy a Second Home with an FHA Loan
