FHA Loan Calculator

Understanding FHA Loans

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are popular among first-time homebuyers because they require lower minimum credit scores and down payments than conventional loans.

FHA Loan Requirements

• Minimum Down Payment: 3.5% for credit scores 580+
• Credit Score: Minimum 500 (with 10% down) to 580 (with 3.5% down)
• Debt-to-Income Ratio: Typically 43% or less, though exceptions up to 50% with compensating factors
• Property Requirements: Must be your primary residence — FHA loans cannot be used for investment properties or second homes
• Employment: Stable employment history, typically 2+ years

FHA MIP Explained

All FHA loans require Mortgage Insurance Premium (MIP), which protects the lender in case you default. Unlike conventional PMI, FHA MIP is required regardless of your down payment amount.

Upfront MIP

• 1.75% of the loan amount (can be rolled into the loan)
• For a $250,000 loan, this is $4,375 — but financing it means you don't pay it out of pocket

Annual MIP

• 0.45% - 1.05% of the loan amount annually
• Paid monthly as part of your mortgage payment
• Duration: 11 years for loans with 10%+ down, life of loan for <10% down
• Most borrowers with less than 10% down pay MIP for the entire loan term

How to Use This Calculator

1. Enter the home price and your down payment percentage (minimum 3.5%)
2. Set your interest rate and loan term (15 or 30 years)
3. Review the breakdown: principal & interest, upfront MIP, annual MIP, and total monthly payment

The calculator automatically includes both the upfront MIP (1.75%) and annual MIP in your payment estimate. You can adjust the MIP rate if your lender quotes a different figure based on your credit score and down payment.

FHA vs Other Loan Types

• FHA vs Conventional: FHA has lower credit requirements (580 vs 620+) and allows 3.5% down. Conventional loans can drop PMI once you reach 20% equity — FHA MIP lasts the life of the loan with <10% down.
• FHA vs VA: VA loans have no mortgage insurance and no down payment, but require military eligibility. FHA is available to all eligible borrowers.
• FHA vs USDA: Both offer low down payments, but USDA is 0% down and limited to rural areas with income caps. FHA is available everywhere with higher loan limits.

For a detailed comparison, see our guides on VA vs FHA and FHA vs Conventional loans.

Frequently Asked Questions

Can I refinance out of an FHA loan? Yes. You can refinance into a conventional loan once you have 20% equity and a credit score of 620+. FHA also offers streamlined refinancing with minimal paperwork and no appraisal required.

Is FHA MIP tax deductible? FHA MIP is tax-deductible for the year the loan is originated. Check with your tax advisor for current deduction limits.

What's the maximum FHA loan amount? FHA loan limits vary by county. In most areas, the 2026 limit is around $472,030 for a single-family home, but high-cost areas may have limits up to $1,209,750. Check your county's limit at hud.gov.