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FHA Loan Calculator

Calculate your FHA monthly payment including upfront and annual MIP

This calculator provides estimates for educational purposes only. Results do not constitute financial, legal, or tax advice. Please consult with qualified professionals before making financial decisions.

Enter FHA Loan Details

FHA minimum is 3.5% with 580+ credit score

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What is an FHA Loan Calculator?

An FHA loan calculator computes the monthly payment for Federal Housing Administration (FHA) loans, including the upfront and annual mortgage insurance premiums (MIP). FHA loans are designed for first-time buyers with lower down payments.

How It Works

1

Enter Home Price and Down Payment

FHA allows down payments as low as 3.5%. Enter your home price and planned down payment amount.

2

Select Loan Term and Interest Rate

Choose between 15 and 30-year terms. Enter your expected interest rate from an FHA-approved lender.

3

Add Property Tax and Insurance

Include property tax rate (varies by state) and annual home insurance cost for complete PITI calculation.

4

Decide on Upfront MIP

Choose whether to pay the 1.75% upfront MIP at closing or roll it into your loan. Rolling increases your balance but reduces closing costs.

5

Review Monthly Payment

Your total monthly PITIMI includes principal, interest, taxes, insurance, and monthly MIP (Mortgage Insurance Premium).

Formula Explanation

Monthly Payment (PITI+MIP)

M = P × [r(1+r)^n] / [(1+r)^n - 1] + Monthly MIP

Variables:

M — Total monthly payment
P — Loan principal after upfront MIP
r — Monthly interest rate
n — Total number of payments
Monthly MIP — Annual MIP ÷ 12

Upfront MIP (UFMIP)

UFMIP = Base Loan × 1.75%

Variables:

UFMIP — Upfront mortgage insurance premium
Base Loan — Loan amount before UFMIP

Real-World Examples

$350,000 Home with 3.5% Down Payment

Input Values

home Price $350,000
down Payment Percent $3.5
interest Rate 6.5%
loan Term Years $30
property Tax Rate 1.2%
annual Insurance $1,400
upfront M I P $true
annual M I P Rate 0.55%

Results

base Loan Amount $337,750
upfront M I P 5910
total Loan 343660
monthly P I T I M I 2398
monthly M I P 155

With 3.5% down ($12,250), your base FHA loan is $337,750. Upfront MIP of 1.75% adds $5,910.

$280,000 Home with 10% Down Payment

Input Values

home Price $280,000
down Payment Percent $10
interest Rate 6.5%
loan Term Years $15
property Tax Rate 1%
annual Insurance $1,200
upfront M I P $false
annual M I P Rate 0.45%

Results

base Loan Amount $252,000
upfront M I P 0
total Loan 252000
monthly P I T I M I 2275
monthly M I P 94

With 10% down, your annual MIP rate drops to 0.45% and MIP cancels after 11 years instead of the life of the loan.

High-Cost Area: $600,000 Home with FHA Loan Limit

Input Values

home Price $600,000
down Payment Percent $3.5
interest Rate 6.5%
loan Term Years $30
property Tax Rate 1.2%
annual Insurance $2,400
upfront M I P $true
annual M I P Rate 0.55%

Results

base Loan Amount $579,000
upfront M I P 10133
total Loan 589133
monthly P I T I M I 4178
monthly M I P 265

In high-cost areas, FHA loan limits can reach $1,089,300. The upfront MIP of $10,133 can be rolled into the loan.

Common Mistakes to Avoid

Forgetting about upfront MIP

FHA loans charge 1.75% upfront MIP that can be rolled into the loan. On a $300,000 loan, that's $5,250 added to your balance.

Not comparing FHA MIP to conventional PMI

FHA annual MIP ranges from 0.45-1.05% of loan amount. Conventional PMI is often cheaper with 20% down and good credit.

Assuming MIP goes away like PMI

With less than 10% down, FHA MIP lasts the life of the loan. Conventional PMI can be cancelled at 20% equity.

Not checking FHA loan limits

FHA loan limits vary by county and can be as low as $420,680 in some areas.

Pro Tips

1

FHA loans require a 580+ credit score for best rates with 3.5% down

2

Upfront MIP can be rolled into your loan to reduce closing costs

3

Annual MIP rates vary - compare with conventional PMI costs

4

FHA loans are assumable - helpful when selling to buyers with less cash

5

Streamline refi available if your FHA loan is currently owned by FHA

6

Property must meet FHA minimum property standards

7

Seller can contribute up to 6% of sale price toward closing costs

Related Calculators

FHA Affordability Calculator FHA vs Conventional Calculator FHA Streamline Refinance Calculator

Sources & References

1

U.S. Department of Housing and Urban Development (HUD) - FHA loan guidelines

Source →
2

FHA Mortgage Insurance Premium Rates

Source →
3

Federal Reserve Economic Data - Housing market statistics

Source →

Last updated: May 29, 2026

Understanding FHA Loans and MIP

FHA loans are mortgages backed by the Federal Housing Administration, designed to make homeownership more accessible for first-time buyers and those with less-than-perfect credit. Unlike conventional mortgages, FHA loans require mortgage insurance premium (MIP), which protects the lender if you default on the loan.

Upfront MIP (UFMIP): FHA requires a one-time upfront mortgage insurance premium of 1.75% of your base loan amount. This can be paid at closing or rolled into your loan balance. If you roll it in, it increases your total loan amount but requires less cash upfront.

Annual MIP: In addition to the upfront MIP, you'll pay annual MIP divided into monthly installments. The rate depends on your loan amount, down payment percentage, and loan term. For a 30-year loan with less than 5% down, the annual MIP rate is 0.55% of the base loan amount. This adds significant cost to your monthly payment compared to conventional loans.

MIP Duration: If you put less than 10% down, you'll pay MIP for the life of your loan. If you put 10% or more down, MIP cancels after 11 years. This is a major consideration when comparing FHA vs conventional — with conventional loans, PMI (similar to MIP) typically cancels automatically when you reach 20% equity.

FHA Loan Limits: FHA sets maximum loan limits that vary by county. In 2026, the standard floor is $524,225 for most counties, but high-cost areas like New York City, Los Angeles, and Honolulu have limits up to $1,209,750. If you need a loan above the limit for your area, you may need to consider a jumbo FHA loan or a different loan product.

Who should use FHA: FHA loans are best for buyers with credit scores below 620, those with limited savings for down payment (as low as 3.5%), or those who can't qualify for conventional financing. If you have excellent credit (720+) and can put 20% down, a conventional loan will likely be cheaper long-term since you can avoid MIP entirely.

FHA vs Other Loan Types

Feature FHA Conventional VA USDA
Min Down Payment 3.5% 3% 0% 0%
Credit Score Min 500 620 620 640
Max Loan Limit $1.2M+ ~$2M+ No limit $700K
MIP/PMI Duration Life if <10% down Cancels at 20% equity None 1% annual fee
Best For Low credit/small DP Good credit/20% DP Veterans Rural buyers

You Might Also Like

FHA vs Conventional Calculator FHA Affordability Calculator FHA Streamline Refinance

Frequently Asked Questions

What is an FHA loan and how does it work?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help first-time buyers and those with lower credit scores qualify for homeownership. FHA loans offer lower down payment requirements (3.5% with 580+ credit) and more flexible qualification guidelines than conventional loans. However, they require Mortgage Insurance Premium (MIP) — both an upfront fee of 1.75% of the loan amount and annual payments that vary based on your down payment and loan term.

How is FHA MIP calculated?
FHA MIP has two components: Upfront MIP (UFMIP) = 1.75% of base loan amount (can be rolled into loan), and Annual MIP paid monthly. Annual MIP rates: 30-year loans with <5% down = 0.55%, with ≥5% down = 0.50%; 15-year loans with <10% down = 0.40%, with ≥10% down = 0.15%. The annual MIP duration depends on your down payment: if you put less than 10% down, MIP lasts the life of the loan; if you put 10% or more down, MIP cancels after 11 years.

What credit score do I need for an FHA loan?
FHA loans accept credit scores as low as 500 with a 10% down payment, or 580+ with just 3.5% down. However, most lenders have their own overlay requirements and may require higher scores. If your score is below 580, you'll likely need to make a larger down payment and demonstrate other compensating factors like stable income and low debt ratios. Our FHA calculators allow you to see how your credit score affects your down payment requirement.

FHA vs conventional loan — which should I choose?
Choose FHA if: your credit score is below 620, you have less than 5% saved for down payment, or you need flexible qualification guidelines. Choose Conventional if: you have 20% or more for down payment, your credit score is 620+, and you want to avoid long-term MIP. Use our FHA vs Conventional calculator to compare total costs including monthly payments, MIP/PMI, and long-term interest to determine which is truly cheaper for your situation.

Can I use down payment assistance with an FHA loan?
Yes! Most state and local down payment assistance programs (DPA) can be combined with FHA loans. DPA programs typically offer grants or forgivable loans that cover your 3.5% down payment requirement, making homeownership possible even with limited savings. Our state-specific FHA calculators include information about available first-time buyer programs in each state that can be used alongside FHA financing.