FHA Loan Calculator
FHA Loan Calculator
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development. FHA loans are designed to help lower-income and first-time homebuyers purchase homes by requiring lower down payments and credit scores than conventional loans. The FHA does not lend money directly; instead, it insures the loan so that if the borrower defaults, the lender is protected against loss.
The key advantage of an FHA loan is the low down payment requirement. Borrowers can qualify with as little as 3.5% down if they have a credit score of 580 or higher. Those with credit scores between 500 and 579 may still qualify with a 10% down payment. This makes homeownership accessible to many people who would otherwise be unable to save the 5% to 20% down payment required by conventional loans.
However, FHA loans come with additional costs in the form of mortgage insurance premiums. There are two types: an Up-Front Mortgage Insurance Premium of 1.75% of the loan amount, which can be financed into the loan, and an annual Mortgage Insurance Premium paid monthly, which varies based on the loan amount and loan-to-value ratio.
FHA loans are particularly popular among first-time buyers, with approximately 80% of FHA borrowers being first-time homebuyers. The program also allows for flexible underwriting standards, including the ability to use gift funds for the down payment and closing costs.
For more information, see the Down Payment Calculator.
Enter the purchase price of the home and the down payment amount or percentage. FHA loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher. Enter the annual interest rate and loan term, typically 15 or 30 years.
Enter the UFMIP rate, which is currently 1.75% for most FHA loans. You can choose whether to finance the UFMIP into the loan principal or pay it upfront at closing. Enter the annual MIP rate, which varies by loan-to-value ratio and term. For a 30-year FHA loan with less than 5% down, the annual MIP is typically 0.55%.
Press Calculate to see the full monthly payment breakdown. For example, a $300,000 home with 3.5% down and a 6.5% interest rate on a 30-year FHA loan would have a total monthly payment of approximately $2,195 including MIP and estimated taxes and insurance.
If the UFMIP is financed into the loan, the effective principal becomes:
Where P is the base loan amount and u is the UFMIP rate (typically 1.75%).
The monthly principal and interest payment uses the standard amortization formula:
Where i is the monthly interest rate and N is the total number of monthly payments.
The monthly MIP is calculated as:
FHA loan comparison at 6.5% interest, 30-year term, 0.55% MIP, $200 taxes and insurance:
| Down Pmt | Base Loan | Eff. Loan | P&I | MIP | Total |
|---|---|---|---|---|---|
| 3.5% | $289,500 | $294,566 | $1,862 | $133 | $2,195 |
| 5% | $285,000 | $289,988 | $1,833 | $131 | $2,164 |
| 10% | $270,000 | $274,725 | $1,737 | $124 | $2,061 |
The 1.75% UFMIP can be financed into your loan, reducing closing costs but increasing your monthly payment slightly. If you have sufficient cash, paying it upfront saves on total interest over the life of the loan.
FHA MIP is more expensive than conventional PMI in many cases. If you have a credit score of 720 or higher, compare an FHA loan with 3.5% down against a conventional loan with 5% down. The conventional loan may have a lower total monthly payment even with a larger down payment.
FHA loans are assumable, meaning a buyer can take over your FHA loan at the same interest rate. This can be a significant selling advantage if interest rates rise. FHA also offers a streamlined refinance program with reduced documentation requirements.
FHA MIP rates change periodically based on HUD guidelines and market conditions. The calculator does not include property taxes, homeowners insurance, or HOA fees unless you enter them separately. FHA loans have maximum loan limits that vary by county.
This tool does not determine eligibility, funding rules, or lender overlays. Consult official FHA resources for exact percentages and current guidelines.
FHA loans are mortgages insured by the Federal Housing Administration, designed to help lower-income and first-time homebuyers access homeownership. With down payments as low as 3.5 percent and more flexible qualification requirements, FHA loans are an attractive option for many borrowers. This calculator helps you estimate your monthly payment including principal, interest, mortgage insurance premiums (MIP), and other costs associated with FHA financing.
- What is the minimum down payment for an FHA loan?
- 3.5% with a credit score of 580 or higher. If your score is between 500 and 579, a 10% down payment is required.
- What is MIP and how much does it cost?
- MIP has two parts: upfront MIP of 1.75% of the loan amount paid at closing, and annual MIP of 0.15% to 0.75% paid monthly depending on loan term and LTV.
- What are the FHA loan limits for 2026?
- The single-family limit is $498,257 in most areas (floor). In high-cost areas, up to $1,149,825 (ceiling). Alaska, Hawaii, and territories have higher limits.
- What are the DTI limits for an FHA loan?
- FHA typically requires front-end DTI of 31% or less and back-end DTI of 43% or less. Strong borrowers with compensating factors may qualify up to 50%.
- Is MIP on an FHA loan cancelable?
- For loans with under 10% down, MIP lasts the entire loan term. With 10% or more down, MIP is canceled after 11 years. Refinancing to conventional removes MIP.
- U.S. Department of Housing and Urban Development. "FHA Mortgage Insurance." hud.gov.
- Consumer Financial Protection Bureau. "What is an FHA Loan?" consumerfinance.gov.
- Bankrate. "FHA Loan Rates and Guidelines." bankrate.com.
- NerdWallet. "FHA Loans: Everything You Need to Know." nerdwallet.com.
- Investopedia. "FHA Loan: Definition, Requirements, Benefits." investopedia.com.
Last updated: May 12, 2026