FHA Loan Calculator
Calculate your FHA loan monthly payments including mortgage insurance premiums (MIP). Estimate upfront and annual MIP costs for your FHA mortgage.
FHA Loan Analysis
Monthly Payment (P&I)
Total Monthly Payment (with MIP)
Upfront MIP (1.75%)
Annual MIP
Loan Amount
Total MIP Cost
Understanding FHA Loans
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. These loans are designed to help first-time homebuyers and those with less-than-perfect credit qualify for a mortgage. FHA loans require lower down payments and credit scores compared to conventional loans, but they come with mandatory mortgage insurance premiums (MIP).
Key Features of FHA Loans
- Low down payment: Minimum 3.5% with credit score of 580+
- Flexible credit requirements: Credit scores as low as 500 may qualify
- Upfront MIP: 1.75% of the base loan amount (can be financed)
- Annual MIP: 0.80% to 0.85% of the loan amount annually
- MIP duration: Life of loan with less than 10% down; 11 years with 10%+ down
- Loan limits: Vary by county and property type
Mortgage Insurance Premium (MIP)
FHA loans require two types of mortgage insurance premiums:
- Upfront MIP (UFMIP): 1.75% of the base loan amount, typically financed into the loan
- Annual MIP: Divided into monthly payments, ranges from 0.80% to 0.85% based on loan-to-value ratio and loan amount
Benefits and Considerations
Benefits: Lower down payment requirements make homeownership more accessible, flexible credit requirements help those with credit challenges, and competitive interest rates.
Considerations: Mandatory mortgage insurance increases monthly costs, MIP typically lasts the life of the loan with less than 10% down, and loan limits may restrict purchases in high-cost areas.
FHA Loan Tips
- Minimum down payment: 3.5% with credit score of 580 or higher; 10% with score between 500-579
- Reduce MIP duration: Put down at least 10% to limit annual MIP to 11 years instead of the life of the loan
- Compare with conventional: If you have good credit and can put down 20%, conventional loans may save you money long-term
- Consider refinancing: Once you build equity and improve credit, refinance to a conventional loan to eliminate MIP
- Check loan limits: FHA loan limits vary by county; high-cost areas have higher limits
- Use FHA-approved lenders: Only FHA-approved lenders can originate FHA loans
- Understand closing costs: While FHA allows sellers to pay closing costs, budget for these expenses
Note: This FHA loan calculator provides estimates based on current FHA guidelines. Actual loan terms, MIP rates, and costs may vary based on lender, location, credit score, loan amount, and individual circumstances. Upfront MIP is 1.75% of the base loan amount. Annual MIP rates range from 0.80% to 0.85% depending on loan-to-value ratio and loan amount. With less than 10% down payment, annual MIP is required for the life of the loan. With 10% or more down, MIP is required for 11 years. Consult with an FHA-approved lender for specific details and current rates. This calculator is for educational purposes and should not be considered financial advice.
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