FHA Loan Calculator

Calculate FHA loan payments with MIP and upfront premium

Property & Loan
FHA Details
FHA Loan Summary
Base Loan Amount: $0.00
Upfront MIP: $0.00
Total Loan Amount: $0.00
Principal & Interest: $0.00
Monthly MIP: $0.00
Total Monthly Payment
$0.00
Total Interest: $0.00
Total MIP Paid: $0.00

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What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help borrowers with lower credit scores or smaller down payments buy homes. FHA loans require as little as 3.5% down with a 580+ credit score.

The trade-off is mortgage insurance premiums (MIP)—both upfront and monthly—which protect the lender if you default. FHA loans make homeownership accessible but typically cost more over time due to MIP.

How to Use This Calculator

Step 1: Enter the home purchase price.
Step 2: Input your down payment (minimum 3.5% for 580+ credit).
Step 3: Enter the interest rate offered.
Step 4: Select loan term and credit score range.
Step 5: Click "Calculate FHA Loan" to see payment details.
Step 6: Review total costs including MIP.

Understanding FHA Mortgage Insurance

FHA requires two types of mortgage insurance:

  • Upfront MIP: 1.75% of base loan amount, can be financed or paid cash.
  • Annual MIP: Paid monthly, varies by loan term and down payment:
    • 30-year, <5% down: 0.55% annually
    • 30-year, 5-9.99% down: 0.50% annually
    • 30-year, 10%+ down: 0.50% annually for 11 years
    • 15-year: 0.15-0.40% depending on down payment

Unlike PMI on conventional loans, FHA MIP typically stays for the life of the loan (or 11 years with 10%+ down).

Who Should Consider FHA Loans?

  • First-Time Buyers – with limited savings for down payment.
  • Lower Credit Scores – 580+ can qualify (vs 620+ conventional).
  • Higher Debt-to-Income – FHA allows up to 50% DTI in some cases.
  • Previous Foreclosure/Bankruptcy – shorter waiting periods than conventional.
  • Gift Funds – 100% of down payment can be gifted.

FHA vs Conventional Loans

Feature FHA Conventional
Min Down Payment 3.5% 3%
Min Credit Score 580 (500 with 10% down) 620
Mortgage Insurance Upfront + monthly, typically for life PMI until 20% equity
Max DTI 50% 43-45%
Loan Limits County-specific (varies) $766,550 conforming (2026)

Frequently Asked Questions

What is the minimum credit score for an FHA loan?
580 for 3.5% down payment. With 500-579, you need 10% down. Some lenders have overlays requiring higher scores. The lower your score, the higher your interest rate will be.
Can I get rid of FHA mortgage insurance?
With 10%+ down, MIP drops after 11 years. With less than 10% down, MIP stays for the life of the loan. To eliminate MIP earlier, refinance to a conventional loan once you have 20% equity.
What are FHA loan limits?
FHA loan limits vary by county and are typically lower than conventional limits. In 2026, most counties range from $498,257 to $1,149,825 depending on cost of living. Check the FHA website for your specific county limit.
Can I use gift funds for FHA down payment?
Yes, 100% of the down payment can come from gift funds with proper documentation. The gift must come from an acceptable source (family member, employer, charitable organization) with a gift letter stating no repayment is expected.
What debt-to-income ratio does FHA allow?
FHA typically allows up to 43% DTI, but can go as high as 50% with compensating factors like higher credit score, cash reserves, or residual income. This is more flexible than conventional loans.
Are FHA loans assumable?
Yes, FHA loans are assumable, meaning a buyer can take over your loan with its existing rate and terms. This is valuable if rates rise—you could sell your home with a below-market rate as a selling point.
Can I refinance an FHA loan?
Yes, through the FHA Streamline Refinance program, which requires less documentation and no appraisal in many cases. You can also refinance to a conventional loan to eliminate MIP once you have sufficient equity.
What property types can I buy with FHA?
Single-family homes, multi-family properties (up to 4 units), condos (in FHA-approved projects), and some manufactured homes. The property must meet FHA minimum property standards and be your primary residence.
How long after bankruptcy/foreclosure can I get an FHA loan?
Chapter 7 bankruptcy: 2 years. Chapter 13 bankruptcy: 1 year of on-time payments. Foreclosure/short sale: 3 years. These are shorter than conventional loan waiting periods, making FHA attractive for those rebuilding credit.
Do FHA loans have prepayment penalties?
No, FHA loans do not have prepayment penalties. You can pay off your loan early, make extra principal payments, or refinance without penalty. This gives you flexibility to accelerate payoff.
What is an FHA 203(k) loan?
The FHA 203(k) program allows you to finance both the purchase and renovation of a home with a single loan. Perfect for fixer-uppers, it covers structural repairs, additions, and modernization. Requires FHA-approved contractor.
Can I have more than one FHA loan?
Generally no—FHA loans are for primary residences only. Exceptions exist for relocating (work transfer, family size increase) where commuting is impractical. You must pay off or sell the first property in most cases.