FHA Loan Calculator
Enter your home price, down payment, interest rate and loan term to get your full FHA monthly payment broken down into principal and interest, upfront mortgage insurance premium (UFMIP), ongoing annual MIP, property taxes and homeowners insurance. The calculator applies current HUD MIP rates, shows when MIP falls off, and generates a complete amortization schedule.
What is an FHA loan and who qualifies?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because the federal government backs the lender against default, FHA loans allow lower down payments (as little as 3.5%) and more flexible credit requirements than conventional mortgages. Borrowers with a FICO score of 580 or higher qualify for the 3.5% minimum down payment; those with scores between 500 and 579 must put down at least 10%. FHA loans carry two types of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the loan amount paid at closing (or rolled into the loan), and an annual premium (MIP) collected monthly.
How FHA mortgage insurance premiums (MIP) work
The upfront MIP of 1.75% is a one-time charge. Most borrowers choose to finance it into the loan, which spreads the cost over the loan term but slightly increases the balance and monthly payment. The annual MIP is paid monthly and depends on three factors: loan amount, loan term and loan-to-value ratio. For a standard 30-year loan under $726,200 with less than 5% down, the current annual rate is 0.55%, which equals about $160/month on a $350,000 loan. Unlike private mortgage insurance (PMI) on conventional loans, FHA MIP cannot be cancelled by reaching 20% equity. If your down payment was under 10%, MIP lasts the life of the loan; at 10% or more down, it ends after 11 years. To shed MIP earlier, many borrowers refinance into a conventional loan once their equity exceeds 20%.
Understanding your total FHA monthly payment
Your total monthly payment has four components. First, principal and interest (P&I) is calculated using the standard mortgage annuity formula on the financed amount (base loan plus UFMIP if rolled in). Second, monthly MIP is the annual insurance rate applied to the loan balance divided by 12. Third, the escrow portion covers property taxes and homeowners insurance, divided into monthly installments by your lender. Fourth, any HOA dues. Lenders also evaluate your debt-to-income ratio (DTI): FHA guidelines typically require a front-end ratio (housing costs divided by gross income) below 31% and a back-end ratio (all debts) below 43%, though exceptions exist with compensating factors.
FHA vs. conventional loans: when does FHA make sense?
FHA loans are most competitive for borrowers with credit scores below 700 or limited savings for a down payment. At a 620 credit score, FHA rates are typically 0.25-0.75% lower than conventional rates, which can more than offset the MIP cost for several years. However, at scores above 720 and with 20% down, conventional loans are usually cheaper because they carry no PMI at all. The break-even point depends on your rate difference and how long you plan to stay in the home. Borrowers who intend to refinance within 5-7 years often find FHA competitive even with MIP; those planning to stay long-term should model the full lifetime MIP cost against a higher conventional rate.
FHA Annual MIP Rates (post-March 2023, HUD)
| Loan term | Base loan amount | LTV | Annual MIP rate |
|---|---|---|---|
| > 15 years | <= $726,200 | <= 90% | 0.50% |
| > 15 years | <= $726,200 | 90-95% | 0.50% |
| > 15 years | <= $726,200 | > 95% | 0.55% |
| > 15 years | > $726,200 | <= 90% | 0.70% |
| > 15 years | > $726,200 | 90-95% | 0.70% |
| > 15 years | > $726,200 | > 95% | 0.75% |
| <= 15 years | <= $726,200 | <= 78% | 0.15% |
| <= 15 years | <= $726,200 | > 78% | 0.40-0.45% |
Rates apply to standard FHA loans. Higher amounts and higher LTVs carry higher MIP.
Frequently asked questions
What is the minimum down payment for an FHA loan?
The minimum is 3.5% of the purchase price, provided your credit score is 580 or higher. If your score is between 500 and 579, the minimum rises to 10%. Scores below 500 are not eligible for FHA financing. The 3.5% down payment can come from your own savings, a gift from a family member, or an approved down payment assistance program.
Can I cancel FHA mortgage insurance (MIP)?
It depends on your down payment. If you put down 10% or more, annual MIP ends automatically after 11 years. If your down payment was less than 10%, MIP lasts the full life of the loan and cannot be cancelled, regardless of how much equity you build. The most common way to remove MIP early is to refinance into a conventional loan once your equity reaches 20% of the current home value.
What is the upfront MIP and do I have to pay it at closing?
The upfront mortgage insurance premium (UFMIP) is 1.75% of your base loan amount. You can pay it in cash at closing, but most borrowers choose to roll it into the loan balance. Financing it avoids a large upfront cost but increases your loan amount slightly and therefore your P&I payment. Over a 30-year loan, financing a $5,950 UFMIP at 6.75% adds roughly $37/month.
Are there FHA loan limits?
Yes. HUD sets FHA loan limits by county and property type. For 2024, the standard single-family limit is $498,257 in low-cost areas and $1,149,825 in high-cost areas (roughly 150% of the conforming loan limit). Loans above the local FHA limit must use conventional, jumbo or other financing. Check HUD's website or ask a lender for the exact limit in your county.
What credit score do I need for an FHA loan?
HUD sets the floor at 500, but most lenders impose overlays (higher minimums) of 580 or even 620. A score of 580 or above unlocks the 3.5% down payment; scores from 500-579 require 10% down. Higher scores generally earn lower interest rates, reducing your monthly payment even on an FHA loan.
Does this calculator account for property taxes and insurance?
Yes. Enter your estimated annual property tax and homeowners insurance in the corresponding fields and the calculator adds those monthly escrow amounts to the total payment. If you live in a condo or planned development, also enter your HOA dues. These amounts vary widely by location and property, so check with your county assessor and an insurance agent for precise figures.
Should I roll the UFMIP into the loan or pay it at closing?
Most borrowers roll it in to preserve closing cash. The cost of financing the UFMIP is the interest you pay on that extra balance over time. At 6.75% on a 30-year loan, every $1,000 of UFMIP financed costs about $6.24/month extra. If you have the cash available and plan to stay in the home long-term, paying at closing saves money; if cash is tight or you may move within a few years, rolling it in is usually the practical choice.