FHA Loan Calculator

Home Price ($)

Down Payment (%)

FHA minimum is 3.5% down

Loan Term (years)

Interest Rate (%)

Property Tax (/year)

Home Insurance (/year)

Financial Disclaimer

This FHA loan calculator provides estimates for educational purposes only and is not financial or mortgage advice. Actual FHA loan terms, MIP rates, and eligibility depend on your credit score, income, debt-to-income ratio, and lender requirements. FHA loan limits and MIP rates are subject to change by HUD. Consult a licensed mortgage professional for a personalized loan estimate and official pre-approval.

What is FHA Loan Calculator?

FHA loans are mortgages insured by the Federal Housing Administration under the National Housing Act (12 U.S.C. § 1709), designed to help borrowers with lower credit scores or smaller down payments purchase homes. FHA loans require as little as 3.5% down for borrowers with credit scores of 580 or above, and 10% down for scores between 500–579. Unlike conventional loans, FHA loans require Mortgage Insurance Premium (MIP), which includes an upfront premium of 1.75% of the base loan amount (can be financed into the loan) and an annual premium ranging from 0.15% to 0.75% depending on loan term, down payment, and loan amount. For loans with less than 10% down on terms over 15 years, the annual MIP rate is 0.75% and lasts for the entire life of the loan — it cannot be removed by reaching 20% equity. FHA loan limits vary by county and are adjusted annually by HUD; for 2026, the national floor for single-family homes is expected to be approximately $524,225 with higher limits in high-cost areas.

How to Use

Enter the home purchase price.
Select your down payment percentage (minimum 3.5% for FHA with 580+ credit).
Choose your loan term (15, 20, or 30 years).
Enter the FHA interest rate from your lender.
Add annual property tax and insurance estimates.
Click Calculate to see your complete FHA payment breakdown including MIP.

Why Use This Tool?

Understand the true cost of an FHA loan including both upfront and annual MIP

See how different down payments affect your MIP rate and monthly costs

Calculate both upfront and annual MIP accurately per HUD guidelines

Compare FHA loans with different terms and down payment scenarios

Plan your home purchase with realistic payment estimates before applying

Know exactly what you'll pay monthly including principal, interest, tax, insurance, and MIP

Tips & Best Practices

FHA minimum down payment is 3.5% with a 580+ credit score, 10% with 500–579
Putting 10%+ down reduces annual MIP rate from 0.75% to 0.45% on 30-year loans
MIP lasts for the life of the loan if down payment is under 10% — you must refinance to remove it
FHA loans are assumable, which can be an advantage in a rising-rate environment
Consider conventional loans if you have 20% down to avoid MIP entirely
FHA loan limits vary by county — check HUD's website for your area's specific limit

Frequently Asked Questions

What is FHA MIP and how does it work?

FHA Mortgage Insurance Premium (MIP) protects lenders against borrower default, as required by the National Housing Act. It includes upfront MIP (1.75% of base loan amount, payable at closing or financed into the loan) and annual MIP (monthly payments based on loan amount, term, and down payment). Unlike PMI on conventional loans, FHA MIP often lasts for the entire loan term.

What credit score do I need for an FHA loan?

FHA guidelines require a minimum credit score of 500. With 500–579, you need a 10% down payment. With 580+, you qualify for the 3.5% minimum down payment. Individual lenders (overlays) may require higher scores — typically 620+ — for better rates and terms.

How long do I pay FHA MIP?

If your down payment is less than 10% on a loan term over 15 years, MIP lasts for the entire loan term. If you put down 10% or more, MIP ends after 11 years. You cannot remove MIP by reaching 20% equity — you would need to refinance to a conventional loan.

What are FHA loan limits for 2026?

FHA loan limits vary by county and are adjusted annually by HUD. The national floor is expected to be approximately $524,225 for single-family homes in low-cost areas, with limits up to approximately $1,209,750 in high-cost areas. Check HUD's FHA Mortgage Limits page for your county's specific limit.

Should I choose FHA or conventional loan?

FHA is better if you have a lower credit score (below 680), a small down payment (3.5–5%), or a higher debt-to-income ratio. Conventional is better if you have good credit (720+) and can put down 20% to avoid PMI, or plan to reach 20% equity quickly to remove PMI. Run both scenarios to compare total costs.

Can I refinance out of an FHA loan?

Yes, you can refinance from FHA to conventional once you build sufficient equity and improve your credit score. This eliminates MIP if you have 20% equity. The FHA-to-FHA Streamline Refinance is also available with reduced paperwork and no appraisal required.

What does this calculator not cover?

This calculator does not cover FHA 203(k) rehabilitation loans, FHA Energy Efficient Mortgages (EEM), VA or USDA loan comparisons, adjustable-rate FHA loans (ARMs), closing cost estimates, debt-to-income ratio qualification, or lender-specific overlays. It also does not model the effect of credit score on interest rates or MIP cancellation through refinancing. Consult a licensed mortgage professional for a complete analysis.

Real-world Examples

First-time buyer, $300,000 home with 3.5% down

A first-time homebuyer purchases a $300,000 home with the minimum 3.5% down payment on a 30-year FHA loan at 6.5% interest. Annual property tax is $3,600 and insurance is $1,200.

Buyer with 10% down, lower MIP rate

A buyer puts 10% down on a $300,000 home with a 30-year FHA loan at 6.5%. Same tax and insurance as above.

How this is calculated

FHA loan payments are calculated using standard amortization with MIP rates set by HUD:

Base loan amount: Home price − down payment. Minimum down payment is 3.5% with 580+ credit, 10% with 500–579.
Upfront MIP: 1.75% of base loan amount. Can be paid at closing or financed into the loan (added to the base loan amount).
Total loan amount: Base loan + upfront MIP (if financed). This is the amount used for the monthly P&I calculation.
Monthly P&I: Standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = total loan, r = monthly rate, n = total payments.
Annual MIP rate: For loans > 15 years: 0.75% if down payment < 10%, 0.45% if down payment ≥ 10%. For loans ≤ 15 years: 0.75% if down payment < 10%, 0.15% if down payment ≥ 10%.
Monthly MIP: (Base loan amount × annual MIP rate) / 12. Note: annual MIP is calculated on the base loan, not the total loan including upfront MIP.
Total monthly payment: P&I + property tax/12 + insurance/12 + monthly MIP.

Sources

MIP rates per HUD guidelines · Last updated June 2026

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