you can get an fha loan for 3.5% down for a house up to $625M. If it's a multi-tennant property that can go up to $1.4MM. And to answer your next question, yes you can find housing for those prices in sf. EG I saw a few 800sf 1br and 1200sf 2 br condos about a block and a half from the caltrain station.

There's also a program called 'kiddie condo' that also allows just 3.5% down, but that usually if not always requires a cosigner.