FHA Loan Calculator
A specialized tool for navigating the unique costs and benefits of FHA-insured mortgages.
FHA Loan Calculator
FHA loans help first-time buyers and those with lower credit scores buy homes with as little as 3.5% down. This calculator estimates your FHA monthly payment — including the mortgage insurance premium (MIP) that makes FHA loans unique.
What Is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration. Because the government backs them, lenders offer more flexible credit requirements and lower down payments than conventional loans. The trade-off is mandatory mortgage insurance premiums.
How to Use This Calculator
- Enter the home purchase price.
- Enter your down payment (minimum 3.5% for credit scores 580+).
- Enter the interest rate.
- Enter the loan term (15 or 30 years).
- The calculator adds the upfront MIP (1.75% of loan) and annual MIP (0.55%–1.05% of loan) automatically.
FHA MIP Explained
Upfront MIP: 1.75% of the loan amount, paid at closing (or rolled into the loan).
Annual MIP: 0.55%–1.05% of the loan amount per year, paid monthly. The rate depends on loan term, LTV, and loan amount.
Example Calculation
Home price: $280,000 | Down payment: $9,800 (3.5%) | Rate: 6.75% | 30-year term
- Base loan: $270,200
- Upfront MIP: $270,200 × 1.75% = $4,729 (rolled into loan = $274,929)
- Monthly P&I: ≈ $1,783
- Monthly MIP: $270,200 × 0.85% ÷ 12 = ≈ $191
- Total monthly payment (excl. taxes/insurance): ~$1,974
FHA vs. Conventional Loan
- FHA: Lower down payment (3.5%), flexible credit (580+), but requires MIP for the life of the loan (if down < 10%).
- Conventional: 3%–5% down possible, but needs credit score 620+. PMI cancels at 20% equity.
Common Mistakes to Avoid
- Not accounting for MIP — FHA payments look cheap until you add MIP. Always calculate the full payment.
- Assuming MIP is temporary — For loans with less than 10% down, MIP lasts the entire 30-year life of the loan.
- Forgetting property requirements — FHA requires the home to meet minimum standards. Properties in poor condition may not qualify.
- Skipping the FHA loan limit check — FHA has county-specific loan limits. Very expensive homes may exceed FHA limits.
Frequently Asked Questions
What credit score do I need for an FHA loan?
580+ credit score qualifies for 3.5% down. Scores between 500–579 require 10% down. Below 500 typically doesn't qualify for FHA financing.
Can I get rid of FHA mortgage insurance?
If your down payment is less than 10%, MIP stays for the life of the loan. The only way to remove it is to refinance into a conventional loan once you reach 20% equity.
Are FHA rates higher than conventional?
FHA interest rates are often slightly lower than conventional rates, but the added MIP usually makes the total payment higher than a comparable conventional loan with PMI.
Can I use an FHA loan for a multi-family property?
Yes — FHA loans can finance properties with 2–4 units, as long as you live in one of them. This can be a smart house-hacking strategy.
What is the FHA loan limit in my area?
FHA limits vary by county. In 2025, the floor is $498,257 and the ceiling is $1,149,825 in high-cost areas. Check HUD's website for your county's specific limit.
Conclusion
FHA loans open homeownership to buyers who can't meet conventional loan requirements. But mortgage insurance adds real cost — use this calculator to see the full monthly payment before you decide if an FHA loan is right for you.
Related: Mortgage Calculator | VA Mortgage Calculator | House Affordability Calculator | Down Payment Calculator
Expert Tip
If you put down 10% or more on an FHA loan, the annual mortgage insurance (MIP) is removed after 11 years. Otherwise, it remains for the entire life of the loan.
