3.5% down payment with 580+ credit. The most popular first-time buyer loan in America.
The FHA loan has been the gateway to homeownership for millions of Americans since 1934. Backed by the Federal Housing Administration, it requires just 3.5% down with a credit score of 580 or higher — and borrowers with scores as low as 500 can qualify with 10% down. In 2026, loan limits range from $541,287 in standard areas to $1,249,125 in high-cost markets like San Francisco and New York.
What makes FHA particularly powerful for aspiring landlords is the multi-unit provision: you can buy a 1-4 unit property, live in one unit, and rent the others. The rental income from the other units can even help you qualify for the mortgage. About 83% of FHA purchase loans go to first-time buyers, and your entire down payment can come from gift funds or DPA programs — meaning you can potentially close with $0 out of pocket. The trade-off is mortgage insurance (1.75% upfront plus ~0.55% annually), which stays for the life of the loan unless you refinance into a conventional mortgage.
Buy up to a 4-unit property, live in one unit, rent the others.
We'll show you how to combine FHA Loan with other programs to maximize your free money — personalized to your ZIP code and income.