What credit score and down payment are required?

FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.

Can the down payment be a gift?

Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.

FHA Loan for a Second Home or Relocation

Here is the straight answer on fha loan for a second home or relocation for 2026 — the FHA rule, the exceptions, and how to put your strongest file forward.

The short answer

FHA loans are for primary residences, so a second home does not qualify. The main exception is a job relocation that puts your current FHA-financed home too far from the new workplace, allowing a second FHA loan.

What lenders focus on here

Beyond the rule above, an underwriter weighs the whole file — but the factors that matter most in this situation are credit, documentable income, and your debt-to-income ratio.

Eligibility details: the specific program rules and occupancy requirements drive approval here.
Down payment: 3.5% minimum (580+), and gift funds are allowed.
Lender overlays: minimums vary by lender, so comparing several is worth it.

FHA guidelines and lender overlays change. Join the free FHA Notification Program to be alerted when the rules that affect this situation shift.

Your next steps

Pull your credit, gather two years of income documentation, and get pre-approved so you know your real budget. Because lenders set their own overlays on FHA's baseline, comparing two or three is especially important here — one may decline a file another approves.

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Frequently Asked Questions

FHA Loan for a Second Home or Relocation — is it possible in 2026?: FHA loans are for primary residences, so a second home does not qualify. The main exception is a job relocation that puts your current FHA-financed home too far from the new workplace, allowing a second FHA loan.
What credit score and down payment are required?: FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.
Can the down payment be a gift?: Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.