FHA Loan Calculator
Estimate your monthly mortgage payment including FHA mortgage insurance (MIP)
Understanding Your FHA Loan Payment
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It's designed to help first-time homebuyers, low-to-moderate-income borrowers, and those with less-than-perfect credit achieve homeownership. FHA loans require lower minimum down payments and credit scores compared to conventional loans, making them an accessible path to owning a home.
What Makes FHA Loans Different?
Unlike conventional mortgages, FHA loans include mortgage insurance premiums (MIP) — both upfront and annual — that protect the lender in case of default. This insurance is a key cost factor that our calculator above helps you estimate accurately.
FHA Mortgage Insurance (MIP) Explained
FHA loans require two types of mortgage insurance:
- Upfront MIP (UFMIP): A one-time fee of 1.75% of the base loan amount, typically financed into the loan. For a $300,000 loan, this adds approximately $5,250 to your total financed amount.
- Annual MIP: A recurring premium paid monthly, calculated as a percentage of the loan balance. The rate varies based on your loan term, down payment, and loan amount.
Current FHA Annual MIP Rates (2024)
| Loan Term | Down Payment | LTV Ratio | Annual MIP Rate |
|---|---|---|---|
| 30-Year | < 5% | > 95% | 0.55% |
| 30-Year | ≥ 5% | ≤ 95% | 0.50% |
| 15-Year | < 10% | > 90% | 0.40% |
| 15-Year | ≥ 10% | ≤ 90% | 0.15% |
Important: For 30-year loans with down payments under 10%, the annual MIP lasts for the entire life of the loan. With a 10%+ down payment, MIP can be removed after 11 years. For 15-year loans, similar rules apply with shorter durations.
FHA Loan Requirements at a Glance
- Minimum credit score: 580 for 3.5% down; 500–579 for 10% down
- Minimum down payment: 3.5% (for scores 580+)
- Debt-to-income (DTI) ratio: Generally 43% maximum (can go higher with compensating factors)
- Property must be primary residence: FHA loans cannot be used for investment properties or second homes
- FHA loan limits: Vary by county; for 2024, the standard limit is $498,257 in most areas (higher in high-cost counties)
- Mortgage insurance: Required for all FHA loans regardless of down payment size
How to Use This FHA Loan Calculator
Our calculator above is designed to give you a complete picture of your potential monthly payment. Simply enter:
- Home price – The purchase price of the property you're considering
- Down payment – Either as a percentage or dollar amount (FHA minimum is 3.5%)
- Interest rate – The annual interest rate offered by your lender
- Loan term – 30-year or 15-year fixed rate
- Property tax rate – Your local annual property tax percentage
- Home insurance – Your estimated annual homeowners insurance premium
The calculator automatically factors in the upfront MIP (financed into the loan) and the appropriate annual MIP rate based on your loan parameters.
Pros and Cons of FHA Loans
✅ Pros
- Lower down payment requirements (as low as 3.5%)
- More lenient credit score requirements
- Competitive interest rates despite lower credit profiles
- Assumable loans — future buyers can take over your FHA loan
- Gift funds allowed for down payment and closing costs
❌ Cons
- Mandatory mortgage insurance (both upfront and annual)
- Annual MIP may last for the entire loan term (if down payment < 10%)
- Loan limits may restrict purchasing power in high-cost areas
- Property must meet FHA appraisal and safety standards
- Not available for investment or vacation properties
Frequently Asked Questions
Can I cancel FHA mortgage insurance?
If you put down 10% or more, annual MIP can be removed after 11 years. If your down payment was less than 10% on a 30-year loan, MIP is required for the full loan term. However, you can refinance into a conventional loan once you have sufficient equity (typically 20%) to eliminate mortgage insurance altogether.
Is FHA only for first-time homebuyers?
No! While FHA loans are popular among first-time buyers, they are available to any qualified borrower. You can use an FHA loan even if you've owned a home before, as long as the property will be your primary residence.
How much can I borrow with an FHA loan?
FHA loan limits vary by county. For 2024, the standard limit for a single-family home is $498,257 in most areas, rising to $1,149,825 in high-cost counties. Check your local FHA loan limits for precise figures.
Disclaimer: This FHA Loan Calculator provides estimates for informational purposes only. Actual loan terms, interest rates, and mortgage insurance premiums may vary based on your credit profile, lender, and market conditions. Always consult with a qualified mortgage professional for personalized advice. This tool is not a commitment to lend.
