FHA loan

A government-insured mortgage with low down payment (3.5%), used primarily for owner-occupants.

FHA loans are insured by the Federal Housing Administration. The owner must occupy the property as their primary residence for at least 12 months. Investor angle: house hacking — buy a 2-4 unit with FHA, live in one unit, rent the others. The 3.5% down payment lets you control a $400k duplex with $14k of cash. Trade-off: lifetime MIP (Mortgage Insurance Premium) of 0.55-1.05% annually that doesn't drop off the way PMI does on conventional loans. Most investors refinance to conventional once they have 20% equity to drop MIP.