Two separate questions live in this one: which "FHA construction loan" you mean, and whether FHA will let you hold two loans at once. On the loan type: a true FHA one-time-close construction loan (build from the ground up) is rare, offered by only a couple of lenders, and follows a different process from a standard FHA purchase. Far more common is the FHA 203k renovation loan, where you buy a home and finance improvements into the same loan. The 203k comes in a streamlined version for smaller repair scopes and a full version for larger projects that run into the six figures, which requires contractor plans and an FHA inspector signing off on the work. Both add steps a standard purchase does not have, and 203k limits and requirements change, so confirm the current rules. On two FHA loans at once: FHA insures owner-occupied primary residences, and the general rule is one FHA loan per borrower. The exceptions are specific: - Job relocation establishing a new principal residence more than 100 miles away. - A documented increase in family size where the current home no longer meets your needs, and the existing loan has meaningful equity behind it. - Vacating a jointly owned property, or being only a non-occupying co-borrower on the other FHA loan. One flag worth raising: if a property was purchased as a rental, FHA was the wrong financing for it in the first place, since FHA requires you to occupy the home. Before pointing you to the right construction or renovation option, we would want to pin down which loan type you actually need and confirm the occupancy details. That is exactly what we sort out on a Roadmap conversation.