Purchasing a second home with an FHA loan can be a great option for those looking to invest in property! However, there are certain eligibility requirements that must be met in order to qualify. Firstly, one must have a valid Social Security number and provide proof of U.S. citizenship or lawful residence (e.g., green card) in the country. Additionally, borrowers need to show that they have steady employment and enough income to make the mortgage payments each month. It is also necessary to demonstrate good credit history with no late payments on existing debts or bankruptcy within the last two years!

Moreover, FHA loans require a minimum down payment of 3.5%. This amount may vary however depending on your credit score and other factors such as debt-to-income ratio, or DTI ratio. In addition, another important factor is loan-to-value ratio (LTV). This ratio measures how much you owe against the total value of your second house which determines how much money you will need for closing costs and down payment requirements.

Finally, it’s essential to remember that your monthly mortgage payment should not exceed 31% of your gross monthly income (including taxes). Furthermore, if you already own any other real estate properties then you must provide proof of ownership and occupancy history along with evidence of rental income if applicable! All these things are crucial when applying for an FHA loan on a second home so it’s best to consult with an experienced lender who can help guide through the process step by step!