Can You Have Two FHA Loans at the Same Time in Kentucky?

 

Can You Have Two FHA Loans at the Same Time in Kentucky?2025 Guide

🎯Quick Answer

Yes—but only under four tightly‑defined HUD exceptions. Below we unpack each scenario, outline documentation you'll need, and offer Kentucky‑specific strategies if you don't qualify.

Why the FHA Usually Caps You at One Loan

FHA loans are engineered to encourage owner‑occupied, primary‑residence purchases. Multiple simultaneous FHA loans would effectively convert the program into a low‑down‑payment tool for investment property accumulation—something HUD explicitly forbids (Handbook 4000.1 § II.A.1.b.iii(A)).

The Four HUD Exceptions That Permit a Second FHA Loan

#ExceptionCore Requirements
1
Employment‑Related Relocation
("100‑Mile Rule")
  • Job transfer or new employment more than 100 miles from current home
  • New Kentucky primary residence must be established in the distant area
  • Existing home can be retained or rented
2
Increase in Family Size
  • Documented increase in legal dependents makes current home inadequate
  • Existing FHA loan is ≤ 75% LTV or paid down to that level (needs current appraisal)
3
Vacating a Jointly‑Owned Property
  • Borrower permanently leaves a home still occupied by co‑borrower (e.g., divorce)
4
Non‑Occupying Co‑Borrower
  • You co‑signed someone else's FHA loan but didn't live there—now you want your own Kentucky primary residence

How to Prove You Qualify (Kentucky Lender Checklist)

1Gather Documentation

Gather relocation or family‑size documentation. Offer letter, transfer memo, birth/adoption certificates, divorce decree—whatever applies.

2Order Appraisal

Order an appraisal to confirm 75% LTV, if using the family‑size exception.

3Run AUS Analysis

Run both housing payments through AUS (DU / TOTAL Scorecard). Standard FHA DTI caps (31/43) still apply, though strong compensating factors may warrant a manual underwrite.

4Budget for Reserves

Budget for reserves. Many Kentucky lenders overlay one‑ or two‑month PITIA reserves on both properties.

Options If You Don't Qualify for a Second FHA Loan

  • Refinance your first FHA into a Conventional loan to free up FHA eligibility and potentially drop monthly MIP.
  • Pursue VA, USDA, or Kentucky Housing Corporation (KHC) financing for the new home if eligible.
  • Sell or legally assume the existing FHA‑financed home, then apply for a fresh FHA case number.

Need a custom game plan? Skip to my contact info and let's run the numbers.

🎯 Ready for a Scenario Review?

I can confirm your eligibility in 10 minutes or less. Call or text (502) 905‑3708 or email kentuckyloan@gmail.com for a same‑day analysis — no cost, no obligation.

Call/Text (502) 905‑3708 Email for Analysis
JL

Joel Lobb

Mortgage Broker – FHA, VA, USDA, KHC
EVO Mortgage · NMLS #57916 · Company NMLS #1738461
📍10602 Timberwood Circle Ste 3, Louisville, KY 40223
📞Call/Text: 502‑905‑3708
✉️kentuckyloan@gmail.com
Equal Housing Lender
Licensed in Kentucky

📋 Important Disclosures

Equal Housing Lender. All loans subject to credit approval, verification, and collateral evaluation. Programs, rates, and guidelines are subject to change without notice. Manufactured/mobile homes are ineligible as collateral.

Licensing Information: See www.nmlsconsumeraccess.org for licensing information.

Educational Purpose: This article is for educational purposes only and does not constitute a commitment to lend. HUD/FHA policy reference: Handbook 4000.1

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