FHA Loan Calculator

Home Price ($)

Down Payment (%)

FHA minimum is 3.5% down

Loan Term (years)

Interest Rate (%)

Property Tax (/year)

Home Insurance (/year)

Disclaimer

Results are estimates for informational purposes only. Actual loan terms, rates, and payments may vary based on your credit score, income, and other factors. Please consult a licensed financial advisor or mortgage professional before making any financial decisions.

What is FHA Loan Calculator?

FHA loans are mortgages 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 and have more flexible credit requirements than conventional loans. However, they require Mortgage Insurance Premium (MIP) which adds to the monthly cost.

How to Use

Enter the home purchase price.
Select your down payment percentage (minimum 3.5% for FHA).
Choose your loan term (15, 20, or 30 years).
Enter the FHA interest rate from your lender.
Add annual property tax and insurance estimates.
Click Calculate to see your complete FHA payment breakdown.

Why Use This Tool?

Understand the true cost of an FHA loan including MIP

See how different down payments affect your costs

Calculate both upfront and annual MIP accurately

Compare FHA loans with different terms

Plan your home purchase with realistic payment estimates

Know exactly what you'll pay monthly before applying

Tips & Best Practices

FHA minimum down payment is 3.5% with 580+ credit score
10%+ down payment reduces annual MIP rate significantly
MIP lasts for the life of the loan if down payment is under 10%
FHA loans are great for first-time buyers with limited savings
Consider conventional loans if you have 20% down to avoid MIP
FHA loan limits vary by county - check your area's limit

Frequently Asked Questions

What is FHA MIP and how does it work?

FHA Mortgage Insurance Premium (MIP) protects lenders if borrowers default. It includes upfront MIP (1.75% of loan amount, payable at closing or financed) and annual MIP (monthly payments based on loan amount, term, and down payment). Unlike PMI on conventional loans, FHA MIP often lasts for the entire loan term.

What credit score do I need for an FHA loan?

FHA loans require a minimum credit score of 500. With 500-579, you need 10% down payment. With 580+, you can qualify for the 3.5% minimum down payment. Individual lenders may have higher requirements (typically 620+) for better rates.

How long do I pay FHA MIP?

If your down payment is less than 10%, MIP lasts for the entire loan term. If you put down 10% or more, MIP ends after 11 years. You cannot remove MIP by reaching 20% equity - you'd need to refinance to a conventional loan.

What are FHA loan limits?

FHA loan limits vary by county and are adjusted annually. In 2024, the national floor limit is $498,257 for single-family homes, with higher limits in expensive areas (up to $1,149,825 in high-cost areas). Check HUD's website for your county's specific limit.

Should I choose FHA or conventional loan?

FHA is better if you have a low credit score (below 680), small down payment (3.5-5%), or higher debt-to-income ratio. Conventional is better if you have good credit (720+) and can put down 20% to avoid PMI, or plan to reach 20% equity quickly to remove PMI.

Can I refinance out of an FHA loan?

Yes, you can refinance from FHA to conventional once you build equity and improve credit. This eliminates MIP if you have 20% equity. FHA-to-FHA Streamline Refinance is also available with reduced paperwork and no appraisal required.