FHA Loan Calculator
Calculate FHA loan payments including upfront and annual mortgage insurance (MIP).
Loan Details
Purchase price of the home
FHA minimum is 3.5%
Current FHA loan rate
15 or 30 years typical
580+ required for 3.5% down
Income & Qualification
Before-tax monthly income
Car loans, credit cards, etc.
Property Costs
Yearly property tax amount
Homeowner's insurance premium
Homeowner association fees
FHA Loan Results
Total Monthly Payment
Principal, Interest, MIP, Taxes & Insurance
Loan Amount
96.5% LTV
Down Payment
3.5%
Payment Breakdown
Qualification Check
Issues to address: front-end DTI too high, back-end DTI too high
Cash Needed at Closing
FHA Loan Benefits
- • Low down payment: as little as 3.5%
- • Credit scores as low as 580 accepted
- • Gift funds allowed for down payment
- • Assumable loans available
- • Competitive interest rates
How it works
An FHA loan is a mortgage insured by the Federal Housing Administration, designed for buyers with lower credit or small down payments. You can put down as little as 3.5%, but you pay mortgage insurance (MIP): an upfront fee (usually rolled into the loan) plus an annual premium split across your monthly payments.
Loan amount with upfront MIP
Base loan = Price − down payment Loan = Base × (1 + upfrontMIP) Monthly = amortized P&I + annual MIP ÷ 12
- down payment
- as little as 3.5% of price
- upfrontMIP
- one-time fee, currently 1.75% of the base loan
- annual MIP
- ongoing premium (~0.55% of the balance per year)
Worked example
- Home price = $250,000
- 3.5% down = $8,750 → base loan $241,250
- Upfront MIP = 1.75%
- Upfront MIP = 241,250 × 0.0175 ≈ $4,222
- Financed loan ≈ $245,472
You finance ≈ $245,472, then add ~$112/month of annual MIP on top of principal & interest.
Good to know
- The 3.5% down option needs a 580+ credit score; between 500–579 you can still qualify with 10% down.
- Unlike conventional PMI, FHA annual MIP usually lasts the life of the loan (if you put down under 10%) — many borrowers later refinance to a conventional loan to drop it.
- FHA loans have county-based loan limits, so very expensive homes may not qualify.
Related Calculators
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
FHA loans require as little as 3.5% down if your credit score is 580 or higher. With a score between 500 and 579, FHA rules require at least 10% down, though many lenders set their own stricter minimums.
What is FHA mortgage insurance (MIP)?
FHA loans carry two mortgage insurance premiums: an upfront MIP of 1.75% of the loan amount (usually financed into the loan) and an annual MIP, typically around 0.15%-0.75% of the balance depending on the loan size, term, and down payment, paid monthly.
Can I ever remove FHA mortgage insurance?
If you put down 10% or more, annual MIP drops off after 11 years. With less than 10% down, MIP lasts for the life of the loan — the common way out is refinancing into a conventional loan once you have roughly 20% equity.
How do FHA loan limits work?
HUD sets FHA loan limits annually by county, ranging from a national floor in low-cost areas up to a higher ceiling in expensive markets. Check the current limit for your county before shopping, since it caps how much you can borrow with FHA financing.
Should I choose an FHA loan or a conventional loan?
FHA is often better for buyers with lower credit scores or small down payments because of its lenient qualifying rules. Conventional loans usually win if you have good credit and 5%+ down, since private mortgage insurance can be cheaper and is cancellable at 20% equity.