FHA Loan Calculator

Calculate FHA loan payments including upfront and annual mortgage insurance premiums (MIP). See the true cost of FHA financing with accurate HUD rates.

FHA Loan Details

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FHA minimum: 3.5%

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Enter your FHA loan details to see your monthly payment, MIP costs, and total loan expense.

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Pro Tip

If you can put 10% or more down on an FHA loan, your MIP drops after 11 years instead of lasting the full loan term. This can save you tens of thousands in MIP costs.

Compare with Conventional PMI →

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Understanding FHA Loans

FHA loans are mortgages insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). They are designed to help borrowers who may not qualify for conventional loans, particularly first-time homebuyers, those with lower credit scores, or those with limited down payment funds.

The key advantage of an FHA loan is the low down payment requirement of just 3.5% (compared to 5-20% for conventional loans). FHA loans also accept lower credit scores and may allow higher debt-to-income ratios than conventional mortgages. These features make homeownership accessible to a broader range of buyers.

The tradeoff for these lenient qualification requirements is Mortgage Insurance Premium (MIP). FHA loans require both an upfront MIP of 1.75% of the loan amount (which can be financed into the loan) and an annual MIP that is paid monthly. The annual rate depends on the loan-to-value ratio and loan term.

A critical consideration is that for borrowers putting less than 10% down, FHA MIP is required for the entire life of the loan. This differs from conventional PMI, which can be removed at 20% equity. Many FHA borrowers choose to refinance into a conventional loan once they build sufficient equity to eliminate the ongoing MIP cost.

FHA MIP Calculation

Monthly MIP = (Base Loan Amount × Annual MIP Rate) / 12

Where:

Upfront MIP = 1.75% of base loan amount (can be financed)

Annual MIP (>15yr, LTV>95%) = 0.55% of outstanding balance

Annual MIP (>15yr, LTV<=95%) = 0.50% of outstanding balance

Annual MIP (<=15yr, LTV>90%) = 0.40% of outstanding balance

Annual MIP (<=15yr, LTV<=90%) = 0.15% of outstanding balance

MIP Duration = Life of loan if <10% down; 11 years if >=10% down

Frequently Asked Questions

What is the minimum down payment for an FHA loan?
The minimum down payment for an FHA loan is 3.5% of the purchase price, provided your credit score is 580 or higher. Borrowers with credit scores between 500-579 must put down at least 10%.
What is the upfront MIP and can it be financed?
The upfront Mortgage Insurance Premium (MIP) is 1.75% of the base loan amount. Yes, it can be financed into the loan, which is what most borrowers do. This increases your loan amount but avoids a large out-of-pocket expense at closing.
How long do I have to pay the annual MIP?
If your down payment is less than 10%, you must pay annual MIP for the life of the loan. If your down payment is 10% or more, annual MIP is required for 11 years. The only way to eliminate MIP entirely on a low-down-payment FHA loan is to refinance into a conventional loan once you reach 20% equity.
FHA MIP vs. conventional PMI - what is the difference?
FHA MIP has two parts: an upfront premium (1.75%) and an annual premium (0.50-0.55%). Conventional PMI is typically only a monthly payment (0.3-1.5% annually) with no upfront fee, and it can be removed at 20% equity. FHA MIP for low down payments lasts the life of the loan.
Are there FHA loan limits?
Yes, FHA loan limits vary by county and are updated annually. In 2024, the floor is $472,030 for single-family homes in lower-cost areas, and the ceiling is $1,089,300 in high-cost areas. Check HUD's website for limits in your specific county.