FHA Loan Calculator
FHA Loan Calculator
Minimum 3.5% for credit scores 580+; 10% for scores 500–579
Affects minimum down payment and FHA eligibility
Rolls the 1.75% upfront premium into your loan balance (recommended)
Annual property tax as a percentage of home value
Enter Your Loan Details
Fill in your home price, down payment, interest rate, and other details to see your estimated FHA monthly payment, MIP costs, and amortization schedule.
Important
This calculator is provided for general information only and is not financial, tax, or legal advice. Results are estimates and do not reflect your full circumstances, current rates, fees, or eligibility rules. Speak to a qualified professional before making a financial decision.
Estimate your monthly FHA mortgage payment including MIP, taxes, and insurance
Buying a home with an FHA loan is one of the most accessible paths to homeownership in the United States, especially for first-time buyers, those with lower credit scores, or anyone who hasn't saved a 20% down payment. Backed by the Federal Housing Administration — a division of the Department of Housing and Urban Development — FHA loans allow qualifying borrowers to purchase a home with as little as 3.5% down and credit scores starting at 580. Even borrowers with scores as low as 500 can qualify, though they must put down at least 10%. Understanding the true cost of an FHA loan goes beyond the interest rate on your note. Every FHA loan carries two layers of mortgage insurance premiums (MIP): an upfront premium of 1.75% of the base loan amount, typically rolled into the loan balance, and an ongoing annual premium that ranges from 0.15% to 0.75% depending on your loan term, loan-to-value ratio, and base loan amount. Unlike private mortgage insurance (PMI) on conventional loans — which automatically cancels once you reach 20% equity — FHA annual MIP often continues for the life of the loan if your down payment is less than 10%. That difference in MIP duration can add tens of thousands of dollars to your total cost over a 30-year term. This FHA loan calculator gives you a complete picture of your monthly obligation before you ever speak to a lender. Enter your home price, down payment, interest rate, loan term, and credit score range, and the calculator instantly computes your principal and interest (P&I) payment, monthly MIP, estimated property taxes, and homeowner's insurance. The results include the total PITI+MIP figure — the number lenders actually use when qualifying you — along with a visual donut chart breaking down each payment component and a balance-over-time line graph showing exactly when (or whether) your MIP cancels. The calculator also surfaces important context that many online tools omit. It shows the 2026 FHA loan limits — a national floor of $541,287 for single-family homes in low-cost areas and a ceiling of $1,249,125 in high-cost markets — so you can immediately see whether your target purchase price falls within FHA eligibility. It flags your credit score tier and the minimum down payment it requires. And it runs a side-by-side comparison against a conventional loan with PMI, so you can weigh the monthly payment difference and decide which path makes more financial sense for your situation. For anyone exploring homeownership in 2026, the FHA program remains remarkably relevant. Conventional loan programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible also allow 3% down, but they require stronger credit and stricter debt-to-income ratios. FHA's more forgiving underwriting — accepting front-end debt-to-income ratios up to 31% and back-end ratios up to 43% (and up to 57% with compensating factors) — continues to make it the preferred choice for millions of buyers each year. Use this calculator to model your scenario, then bring those numbers into your lender conversation with confidence.
Understanding FHA Loans and Mortgage Insurance
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a government agency established in 1934 to stabilize the housing market and expand access to homeownership. Because the government backs FHA loans, approved lenders take on less risk and can offer more flexible qualification standards. Borrowers pay for this insurance through mortgage insurance premiums (MIP) rather than out-of-pocket lender costs. FHA loans are issued by private lenders — banks, credit unions, and mortgage companies — but must conform to FHA guidelines on loan limits, minimum down payments, and property standards. They are widely used by first-time buyers, repeat buyers in high-cost markets, and anyone who has experienced credit challenges.
How Are FHA Payments Calculated?
Your monthly FHA payment has four primary components. First, principal and interest (P&I) is calculated using standard mortgage amortization: Monthly P&I = Loan Amount × [r(1+r)^n / ((1+r)^n − 1)], where r is the monthly interest rate (annual rate ÷ 12) and n is the total number of monthly payments. Second, upfront MIP equals 1.75% of the base loan amount and is typically financed into the loan, which slightly increases your P&I payment. Third, annual MIP is charged as a percentage of the remaining loan balance, divided by 12 for the monthly cost. The rate depends on your loan term, base loan amount, and LTV: for a 30-year loan under $726,200 with LTV above 95%, the 2026 rate is 0.55%; at or below 95% LTV it's 0.50%. Finally, property taxes and homeowner's insurance are estimated and included to give you the true PITI figure lenders evaluate.
Why MIP Duration Matters So Much
The single most important difference between FHA and conventional mortgage insurance is how long you pay it. Conventional PMI automatically cancels when your loan-to-value ratio reaches 80%, and federal law requires lenders to cancel it at 78% LTV. FHA annual MIP, by contrast, cancels after 11 years only if your original LTV was 90% or below — meaning you put down at least 10%. If your down payment was less than 10%, you pay annual MIP for the entire 30-year life of the loan. Over a 30-year term at a 0.55% annual MIP rate, that can add $40,000–$70,000 to the total cost of a typical FHA loan. Many borrowers who started with FHA refinance to a conventional loan once they reach 20% equity to eliminate ongoing MIP — a strategy called 'FHA-to-conventional refinance.'
Limitations and Considerations
This calculator provides estimates based on the information you enter and 2026 FHA MIP rate tables. Actual loan costs may differ based on factors not included here, such as HOA fees, flood insurance requirements, local tax assessments, discount points, lender fees, and title insurance. The calculator uses a fixed-rate loan model; adjustable-rate FHA mortgages (ARMs) would have different payment trajectories. The conventional loan comparison uses a simplified 5% down, 0.70% PMI estimate and may not match actual quotes from lenders. Credit score tiers affect minimum down payment requirements shown here but do not capture all FHA underwriting nuances — lenders may apply overlays (stricter requirements) beyond the FHA minimums. Property values, interest rates, and insurance costs all vary by location. Always obtain a Loan Estimate from a licensed lender before making financing decisions.
How to Use the FHA Loan Calculator
Enter Home Price and Down Payment
Type your target home purchase price. Then enter your down payment as either a percentage or a dollar amount using the % / $ toggle. The calculator enforces the FHA minimum: 3.5% for credit scores 580 and above, 10% for scores between 500 and 579.
Set Rate, Term, and Credit Score
Enter the interest rate you've been quoted or expect to receive, choose 15 or 30 years, and select your credit score range. The credit score range determines your FHA eligibility tier and minimum required down payment, which is flagged automatically.
Configure MIP and Escrow Inputs
Leave 'Finance Upfront MIP into Loan' toggled on (the default) to roll the 1.75% upfront premium into your loan balance, as most borrowers do. Adjust your local property tax rate and annual insurance premium to get an accurate PITI estimate.
Review Results and Export
Read your monthly PITI+MIP total, review the donut chart and loan summary, and check the balance-over-time graph to see when (or whether) your MIP cancels. Use Export CSV to download the full amortization schedule, or Print Results to save a PDF.
Frequently Asked Questions
What is the FHA upfront mortgage insurance premium (UFMIP)?
The FHA upfront mortgage insurance premium is a one-time charge equal to 1.75% of your base loan amount. For a $300,000 loan, that's $5,250. Most borrowers choose to finance the UFMIP into their loan rather than paying it at closing — this increases the total loan balance slightly but avoids a large out-of-pocket expense. Financing the UFMIP means your monthly P&I payment is calculated on the combined total of your base loan plus the UFMIP amount. The upfront premium goes into the FHA's Mutual Mortgage Insurance Fund, which covers lender losses if borrowers default.
How long do I have to pay FHA annual MIP?
FHA annual MIP duration depends entirely on your original loan-to-value ratio at origination. If your down payment was 10% or more (meaning LTV was 90% or below), your annual MIP cancels automatically after 11 years. If your down payment was less than 10% — which is most FHA borrowers who put down the minimum 3.5% — annual MIP continues for the entire life of the loan, which could be 30 years. This is a key cost distinction from conventional loans with PMI, which cancels once you reach 80% LTV. Many FHA borrowers refinance into a conventional loan once they've built sufficient equity to eliminate the ongoing MIP cost.
What credit score do I need for an FHA loan?
The FHA program accepts borrowers with credit scores as low as 500. However, the score tier significantly affects your minimum down payment. Borrowers with scores of 580 or higher qualify for the standard 3.5% minimum down payment. Borrowers with scores between 500 and 579 are technically eligible but must put down at least 10%. Borrowers with scores below 500 are not eligible for FHA financing at all. Keep in mind that while the FHA sets these minimums, individual lenders may apply stricter 'overlays' — for example, requiring a 620 or 640 minimum score — so the published FHA floor doesn't guarantee approval at every lender.
How does FHA compare to a conventional loan?
FHA and conventional loans serve different borrower profiles. FHA loans offer lower minimum credit scores (500 vs. typically 620+), a lower minimum down payment (3.5% vs. 3–5%), and more flexible debt-to-income ratio allowances (up to 43%, with exceptions to 57%). Conventional loans, however, do not require upfront mortgage insurance, and their PMI cancels at 80% LTV — unlike FHA MIP, which persists for the life of the loan in most cases. For borrowers with strong credit (740+) and a 10–20% down payment, conventional loans often result in lower total costs over the life of the loan. FHA tends to win for buyers with lower credit scores or smaller down payments who need lender flexibility.
What are the FHA loan limits for 2026?
FHA loan limits are set annually by HUD based on local median home prices. For 2026, the national floor for a single-family home is $541,287 — this applies to low-cost counties where home prices are below the national median. The national ceiling (high-cost limit) for single-family homes is $1,249,125, applicable in high-cost metropolitan areas such as San Francisco, New York, and Honolulu. Multifamily properties have higher limits: 2-unit ($693,050–$1,599,375), 3-unit ($837,700–$1,933,200), and 4-unit ($1,041,125–$2,402,625). If your purchase price exceeds the FHA limit for your county, you'll need to explore conventional or jumbo financing.
Can I use an FHA loan for investment properties or second homes?
No — FHA loans are strictly for primary residences. You must intend to occupy the property as your main home within 60 days of closing and continue living there. FHA loans cannot be used to purchase vacation homes, investment properties, or rental properties where you will not reside. However, FHA does allow you to purchase a 2-, 3-, or 4-unit multifamily property with an FHA loan, as long as you occupy one of the units as your primary residence. This 'house hacking' strategy lets buyers use rental income from the other units to offset mortgage costs, which can significantly improve affordability.