Markdown_files/FHA handbook/page_188.md

## II. Origination Through Post-Closing/Endorsement

### A. Title II Insured Housing Programs Forward Mortgages

#### 1. Origination/Processing

**Policy Eligibility Requirements**

**Exceptions**

**Relocation**  
A Borrower may be eligible to obtain another FHA-insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the Borrower is:  
- Relocating or has relocated for an employment-related reason; and  
- Establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence.  

If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence, provided the relocation meets the two requirements above.  

**Increase in Family Size**  
A Borrower may be eligible for another house with an FHA-insured Mortgage if the Borrower provides satisfactory evidence that:  
- The Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and  
- The Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.  

**Vacating a Jointly-Owned Property**  
A Borrower may be eligible for another FHA-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-Borrower.  

**Non-Occupying Co-Borrower**  
- A non-occupying co-Borrower on an existing FHA-insured Mortgage may qualify for another FHA-insured Mortgage on a new Property to be their own Principal Residence.  
- A Borrower with an existing FHA-insured Mortgage on their own Principal Residence may qualify as a non-occupying co-Borrower on other FHA-insured Mortgages.  

**(3) Required Documentation**  
The Borrower must indicate on the URLA (Fannie Mae Form 1003/Freddie Mac Form 65) that the Property will be the Borrower’s Principal Residence and certify to that fact on form HUD-92900-A.  

**Handbook 4000.1**  
Last Revised: 01/10/2025  

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