FHA Loan Calculator
Calculate your FHA mortgage payment including upfront and monthly MIP (Mortgage Insurance Premium). See how FHA loans with 3.5% down compare to conventional loans and get a complete cost breakdown.
Purchase price of the home
$0.00 (3.5%)
Annual Percentage Rate (APR)
FHA loan term
Annual tax amount
Annual insurance
Monthly HOA dues
Accurate MIP Calculation
Calculate both upfront MIP (1.75%) and annual MIP (0.55-0.85%) based on loan amount and LTV ratio, exactly as FHA requires.
FHA vs Conventional
Compare FHA loans with 3.5% down to conventional loans side-by-side to see which option saves you money.
100% Private
All calculations happen in your browser. Your FHA loan and financial information is never sent to any server.
How FHA Loans Work
FHA Mortgage Insurance Premium (MIP)
FHA loans require two types of mortgage insurance:
- Upfront MIP: 1.75% of the base loan amount, financed into the loan (you don't pay this out of pocket)
- Annual MIP: 0.55% to 0.85% of the loan amount, paid monthly. Rate varies based on loan amount and LTV ratio:
- • Loan $726,200, LTV 95%: 0.55% annually
- • Loan $726,200, LTV > 95%: 0.80% annually
- • Loan > $726,200, LTV 95%: 0.75% annually
- • Loan > $726,200, LTV > 95%: 0.85% annually
Example Calculation
$300,000 home with 3.5% down at 6.5% APR for 30 years:
- • Home Price: $300,000
- • Down Payment: $10,500 (3.5%)
- • Base Loan Amount: $289,500
- • Upfront MIP (1.75%): $5,066 (added to loan)
- • Total Loan Amount: $294,566
- • Annual MIP Rate: 0.80% (LTV > 95%)
- • Monthly MIP: $196
- • P&I Payment: $1,863/month
- • Property Tax: $250/month ($3,000/year)
- • Insurance: $100/month ($1,200/year)
- • Total Monthly Payment: $2,409
When Can MIP Be Removed?
- Down payment < 10%: MIP remains for the life of the loan (30 years). Cannot be removed unless you refinance.
- Down payment 10%: MIP is removed after 11 years of payments automatically.
- Refinance option: Once you reach 20% equity (through payments or home appreciation), you can refinance to a conventional loan to remove MIP.
FHA Loan Benefits
- • Low down payment: Only 3.5% down with credit score 580+
- • Flexible credit requirements: Easier to qualify than conventional loans
- • Seller concessions: Sellers can contribute up to 6% toward closing costs
- • Gift funds allowed: Down payment can come from family gifts
- • Competitive rates: Often lower than conventional loan rates for same borrower
Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help first-time homebuyers and those with lower credit scores. FHA loans require as little as 3.5% down payment but include mortgage insurance premiums (MIP) for the life of the loan if you put down less than 10%.
What is MIP and how is it calculated?
MIP (Mortgage Insurance Premium) is insurance required on FHA loans. It consists of two parts: Upfront MIP at 1.75% of the base loan amount (financed into the loan), and Annual MIP ranging from 0.55% to 0.85% of the loan amount depending on loan size and LTV ratio, paid monthly.
What is the minimum down payment for an FHA loan?
FHA loans require a minimum 3.5% down payment if your credit score is 580 or higher. If your credit score is between 500-579, you'll need a 10% down payment. Our calculator uses 3.5% as the minimum default.
How does FHA MIP compare to PMI on conventional loans?
FHA MIP has both upfront (1.75%) and monthly premiums, and typically lasts for the life of the loan if you put down less than 10%. Conventional PMI has no upfront fee, usually lower monthly premiums (0.3-1.5%), and can be removed once you reach 20% equity.
Can FHA MIP be removed?
If you put down at least 10%, FHA MIP will be removed after 11 years of payments. If you put down less than 10%, MIP remains for the entire life of the loan. The only way to remove it before then is to refinance into a conventional loan once you have 20% equity.
What are FHA loan limits?
FHA loan limits vary by county and property type. For 2024, the standard limit is $472,030 for a single-family home in most areas, with high-cost areas up to $1,089,300. Our calculator adjusts MIP rates at $726,200 where high-balance loan rates begin.