FHA Loan

A government-backed mortgage with low down payment requirements. Owner-occupied only — but perfect for house hacking.

Key Features

• 3.5% down with 580+ credit score
• 10% down with 500-579 credit score
• Allows 2-4 unit properties (you must live in one unit)
• Mortgage Insurance Premium (MIP) required for life of loan

FHA Loan Limits (2024)

Vary by county and unit count. In most areas:

• 1-unit: ~$472,000
• 2-unit: ~$604,000
• 3-unit: ~$730,000
• 4-unit: ~$907,000

House Hacking with FHA

Buy a fourplex with 3.5% down, live in one unit, rent out three. The rental income from the other units can cover (or exceed) your mortgage payment.

Limitations

• Owner-occupied only (must live there 1 year)
• MIP adds to monthly cost
• Property must meet FHA inspection standards