FHA Loan Calculator
Calculate your FHA loan payment including upfront and annual mortgage insurance premiums (MIP). FHA loans are backed by the Federal Housing Administration and allow down payments as low as 3.5%. Enter your details below to see a complete payment breakdown and an FHA vs Conventional comparison.
FHA Loan Calculator Inputs
Enter FHA Loan Details
Your FHA Loan Results
Estimated Monthly FHA Payment
- Total Monthly Payment
- $2,394.55 /mo
- Principal & Interest
- $1,861.86
- Property Tax
- $300.00
- Home Insurance
- $100.00
- Monthly MIP
- $132.69
- Total Interest Paid
- $375,703.35
- Total Cost of Loan
- $862,038.00
FHA Loan Details
- Base Loan Amount
- $289,500.00
- Upfront MIP (1.75%)
- $5,066.25
- Total Loan (with UFMIP)
- $294,566.25
- LTV Ratio
- 96.5%
- Annual MIP Rate
- 0.55%
- Monthly MIP
- $132.69
- Annual MIP
- $1,592.25
- Total MIP (Lifetime)
- $47,768.40
- Interest Rate
- 6.500%
FHA vs Conventional Comparison
| FHA Loan | Conventional | Difference | |
|---|---|---|---|
| Loan Amount | $294,566.25 | $289,500.00 | $5,066.25 |
| Monthly P&I | $1,861.86 | $1,829.84 | $32.02 |
| Monthly MIP / PMI | $132.69 | $168.88 | $-36.19 |
| Monthly Tax | $300.00 | $300.00 | $0.00 |
| Monthly Insurance | $100.00 | $100.00 | $0.00 |
| Total Monthly Payment | $2,394.55 | $2,398.72 | $-4.17 |
| Total Interest | $375,703.35 | $369,242.40 | $6,460.95 |
| Total MIP / PMI | $47,768.40 | $60,796.80 | $-13,028.40 |
| Total Cost of Loan | $862,038.00 | $863,539.20 | $-1,501.20 |
How FHA Loans Work
FHA loans are mortgages insured by the Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development (HUD). They are designed to help borrowers who may not qualify for conventional mortgages — particularly first-time homebuyers, those with lower credit scores, and buyers who have limited savings for a down payment. Because the government insures the loan against default, lenders can offer more favorable terms: down payments as low as 3.5%, lower credit score thresholds, and competitive interest rates.
In exchange for this government backing, FHA borrowers pay mortgage insurance premiums (MIP) — both an upfront premium at closing and an annual premium paid monthly. This is the key trade-off: easier qualification in exchange for additional insurance costs.
FHA Mortgage Insurance Premium (MIP) Explained
FHA MIP has two components:
Upfront MIP (UFMIP)
A one-time premium of 1.75% of the base loan amount, charged at closing. Most borrowers finance this amount into their loan rather than paying it out of pocket. For a $289,500 loan, the UFMIP is $5,066.25.
Annual MIP
An ongoing annual premium divided into monthly payments. The rate depends on your loan term and LTV ratio. For this loan (30-year term, 96.5% LTV), the annual MIP rate is 0.55%, which equals $132.69/mo.
Annual MIP Rate Schedule
| Loan Term | LTV Ratio | Annual MIP Rate |
|---|---|---|
| More than 15 years | 95% or less | 0.50% |
| More than 15 years | More than 95% | 0.55% |
| 15 years or less | 90% or less | 0.15% |
| 15 years or less | More than 90% | 0.40% |
FHA vs Conventional: Which Is Right for You?
Choose FHA If:
- Your credit score is below 680
- You have limited savings for a down payment (as low as 3.5%)
- You have a higher debt-to-income ratio
- You are a first-time homebuyer
- You had a recent bankruptcy or foreclosure
Choose Conventional If:
- Your credit score is 680 or higher
- You can put 20% or more down (avoiding PMI entirely)
- You want to avoid lifetime mortgage insurance
- You are buying an investment property or second home
- The home price exceeds FHA loan limits
FHA Loan Example with Current Inputs
Home price: $300,000 | Down payment: 3.5% ($10,500.00) | Rate: 6.500% | Term: 30 years
- Base loan: $300,000 - $10,500.00 = $289,500.00
- UFMIP (1.75%): $289,500.00 x 0.0175 = $5,066.25
- Total loan (financed): $289,500.00 + $5,066.25 = $294,566.25
- Monthly P&I on total loan: $1,861.86
- Annual MIP (0.55% of base loan): $1,592.25/yr = $132.69/mo
- Monthly tax + insurance: $300.00 + $100.00
- Total monthly payment: $1,861.86 + $132.69 + $300.00 + $100.00 = $2,394.55
FHA Loan Requirements
Credit Score
Minimum 580 for 3.5% down payment. Scores between 500-579 require 10% down. Below 500 is generally not eligible for FHA financing.
Down Payment
Minimum 3.5% of the purchase price. The down payment can come from savings, gift funds from family, down payment assistance programs, or employer assistance.
Debt-to-Income Ratio
Generally, your total monthly debts (including the new mortgage) should not exceed 43% of your gross monthly income. Some lenders may allow up to 50% with compensating factors.
Property Requirements
The home must be your primary residence, meet FHA minimum property standards, and be appraised by an FHA-approved appraiser. Investment properties and vacation homes are not eligible.
Employment History
At least two years of steady employment history. Self-employed borrowers need two years of tax returns showing consistent income.
Loan Limits
FHA loan limits vary by county and are updated annually. In most areas, the limit is $498,257 for a single-family home, though high-cost areas can have limits up to $1,149,825.
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Frequently Asked Questions
What is the difference between UFMIP and annual MIP?
UFMIP (Upfront Mortgage Insurance Premium) is a one-time fee of 1.75% of the base loan amount charged at closing. It is typically financed into the loan. Annual MIP is an ongoing premium paid monthly for the life of the loan (for loans with less than 10% down). The annual rate ranges from 0.15% to 0.55% depending on your loan term and LTV ratio.
Can I remove FHA MIP?
For FHA loans originated after June 3, 2013, MIP lasts for the life of the loan if your down payment is less than 10%. If you put 10% or more down, MIP is removed after 11 years. The most common way to eliminate FHA MIP is to refinance into a conventional loan once you have at least 20% equity in your home.
What credit score do I need for an FHA loan?
The minimum credit score for an FHA loan is 500. However, with a score of 500-579, you must put at least 10% down. A score of 580 or higher qualifies for the minimum 3.5% down payment. Many lenders impose their own minimums (called overlays), often requiring 620 or higher.
Is an FHA loan only for first-time homebuyers?
No. FHA loans are available to anyone who meets the eligibility requirements, not just first-time buyers. However, the property must be your primary residence — you cannot use an FHA loan for investment properties or vacation homes. You can have only one FHA loan at a time, with limited exceptions.
How accurate is this FHA loan calculator?
The P&I calculation uses the standard amortization formula and is accurate to the cent for fixed-rate loans. UFMIP and annual MIP rates reflect current FHA guidelines for loan amounts under $726,200. Property tax and insurance estimates are as accurate as the figures you enter. This calculator does not account for FHA loan limits by county, closing costs, or HOA fees. Always consult an FHA-approved lender for an official loan estimate.