Low down payment home loans, including 2-to-4-unit (fourplex) financing
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It is designed to make homeownership accessible with a low down payment and more flexible credit requirements than conventional financing. As a broker, Bayview Residential Brokerage places FHA loans across California, Oregon, Washington, Arizona and Hawaii, and can compare an FHA loan against conventional, VA and other options in one place.
Down payment: as little as 3.5% down with a credit score of 580 or higher. Borrowers with scores of 500 to 579 generally need 10% down.
Mortgage insurance: FHA loans require mortgage insurance premiums (MIP): an upfront premium of 1.75% of the loan amount (which can be financed) plus an annual premium paid monthly. With less than 10% down, the annual MIP generally lasts for the life of the loan; with 10% or more down, it lasts 11 years.
Occupancy: FHA loans are for a primary residence that the borrower occupies. They are not for pure investment properties.
Flexible qualifying: FHA allows higher debt-to-income ratios than many conventional programs and permits gift funds for the down payment.
FHA limits are set county by county for 2026, from the standard floor in lower-cost areas up to the high-cost ceiling in expensive markets. Ask us for the exact limit in your county. These figures update each January.
Yes, you can use an FHA loan to buy a duplex, triplex or fourplex as long as you live in one of the units as your primary residence. This is one of the most powerful and underused features of the program. The rules:
3.5% down on the whole property. The same low down payment applies whether you buy a single-family home or a four-unit building, and the higher multi-unit loan limits above make larger purchases possible.
Owner-occupancy. At least one borrower must move into one of the units within 60 days of closing and live there for at least one year.
Rental income can help you qualify. Projected rent from the units you do not occupy can be counted toward your income. Lenders typically use 75% of the appraiser's estimated market rent to account for vacancy and maintenance.
Self-sufficiency test (3-4 units only). For triplexes and fourplexes, the property must pass an FHA self-sufficiency test: the adjusted rental income must cover the full monthly mortgage payment. Duplexes are exempt from this test.
This lets an owner-occupant buy an income-producing property with a low down payment and have tenants help cover the mortgage, a strategy often called house hacking.
First-time buyers, buyers with limited savings for a down payment, buyers rebuilding credit, and owner-occupants who want to buy a 2-to-4-unit property and use rental income to help qualify. We compare FHA against conventional and other programs so you can see the full cost difference before you decide.
Yes. FHA allows you to buy a 2-, 3- or 4-unit property with 3.5% down as long as you live in one unit as your primary residence for at least a year. Rental income from the other units can help you qualify.
3.5% of the purchase price with a credit score of 580 or higher, or 10% for scores between 500 and 579.
They vary by county and property size. For 2026 a single-family home ranges from $541,287 in standard-cost areas up to $1,249,125 in high-cost areas, a duplex up to $1,599,375, a triplex up to $1,933,200, and a fourplex from $1,041,125 up to $2,402,625.
Yes. Projected rent from the units you do not occupy can count toward your income, typically at 75% of the appraiser's estimated market rent. For 3-4 unit properties, the rents must also pass an FHA self-sufficiency test.
Yes. FHA loans include an upfront mortgage insurance premium of 1.75% (which can be financed) plus an annual premium paid monthly. With less than 10% down it generally lasts the life of the loan; with 10% or more down it lasts 11 years.
Not as a pure investment. FHA requires you to occupy the property as your primary residence, but you can buy a 2-4 unit building, live in one unit, and rent out the others.
Arizona: • Phoenix • Tucson • Scottsdale • Mesa • Chandler • Glendale • Gilbert • Tempe • Peoria • Surprise
California • Anaheim • Bakersfield • Fresno • Irvine • Long Beach • Los Angeles • Oakland • Riverside • Sacramento • San Diego • San Francisco • San Jose • Santa Ana • Stockton
Hawaii: • Honolulu • East Honolulu • Pearl City • Hilo • Kailua • Waipahu • Kaneohe • Mililani Town • Kahului • Ewa Gentry
Oregon: • Portland • Salem • Eugene • Gresham • Hillsboro • Beaverton • Bend • Medford • Springfield • Corvallis
Washington: • Seattle • Spokane • Tacoma • Vancouver • Bellevue • Kent • Everett • Renton • Federal Way • Spokane Valley
