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FHA Loan Calculator

Calculate FHA loan monthly payment including MIP, taxes, and insurance. See total FHA mortgage insurance cost over the loan life.

Auto-updated May 11, 2026 · Verified daily against IRS, Fed & Treasury sources

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FHA Loan Calculator

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$
%

Min 3.5% (580+ credit) or 10% (500–579)

%

Affects eligibility (500 min)

% /yr
% /yr

Assumptions· 2026

  • ·FHA minimum down payment: 3.5% for FICO ≥ 580; 10% for FICO 500–579
  • ·FHA MIP: 1.75% upfront (typically financed) + 0.55% annual for 30-yr loans > 90% LTV
  • ·2026 FHA loan limits: $524,225 base to $1,209,750 ceiling (high-cost areas)
  • ·Monthly PITI including upfront MIP amortized and annual MIP ÷ 12 shown
When this is wrong
  • ·FHA MIP persists for life of loan if down payment < 10% (loans originated after June 2013)
  • ·FHA vs. conventional PMI: PMI removable at 80% LTV; FHA MIP typically requires full refinance
  • ·FHA DTI limits: 31% front-end / 43% back-end; lender overlays or AUS may allow higher
  • ·Owner-occupancy requirement: FHA requires primary residence occupancy within 60 days
Assumptions· 2026▾
  • ·FHA minimum down payment: 3.5% for FICO ≥ 580; 10% for FICO 500–579
  • ·FHA MIP: 1.75% upfront (typically financed) + 0.55% annual for 30-yr loans > 90% LTV
  • ·2026 FHA loan limits: $524,225 base to $1,209,750 ceiling (high-cost areas)
  • ·Monthly PITI including upfront MIP amortized and annual MIP ÷ 12 shown
When this is wrong
  • ·FHA MIP persists for life of loan if down payment < 10% (loans originated after June 2013)
  • ·FHA vs. conventional PMI: PMI removable at 80% LTV; FHA MIP typically requires full refinance
  • ·FHA DTI limits: 31% front-end / 43% back-end; lender overlays or AUS may allow higher
  • ·Owner-occupancy requirement: FHA requires primary residence occupancy within 60 days
Real-world example: Ohio family buying their first home▾

The Chen family is buying a $340,000 home in Columbus, Ohio. Combined income $115,000, 10% down payment, 30-year fixed at 7.125%.

  • Purchase price: $340,000
  • Down payment: $34,000 (10%)
  • Loan amount: $306,000
  • Rate: 7.125%
  • Term: 30 years
  • Property tax (Franklin Co.): ~1.7%
  • Homeowners insurance: ~$1,400/yr
All-in monthly cost (PITI)
~$2,800/month

Takeaway: Columbus/Franklin County averages are the reference baseline. Property tax rates and insurance premiums shift significantly by ZIP code and HOA status. Plug your actual numbers in above.

When this calculator is wrong▾
  • Property tax rates vary by county, not just state

    We default to state-average millage rates. County and municipal rates vary 40%+ within a single state. Ohio ranges from 0.8% (rural counties) to 2.4% (Cuyahoga/Cleveland area). Always cross-check your specific county assessor's published effective rate.

    Property Tax by State
  • HOA fees are excluded from most calculators

    Homeowner association fees add $100-$800/month in condos and planned communities. Condos in urban markets often run $400-$700/month. If your property has HOA, add it manually to any payment estimate — it directly affects your debt-to-income ratio for loan qualification.

    HOA Fee Calculator
  • Closing costs are not included in purchase price inputs

    Closing costs typically run 2-5% of the loan amount — around $6,000-$15,000 on a $300K home. Lender fees, title insurance, escrow, and prepaid taxes add up fast. These are due at closing in cash, not rolled into the mortgage by default.

    Closing Costs Calculator
  • PMI is omitted when down payment is under 20%

    Private mortgage insurance (PMI) costs 0.5-1.5% of the loan annually until you reach 20% equity. On a $300K loan at 1%, that's $250/month. PMI cancels automatically at 78% LTV under federal law — but you can request removal at 80%.

  • Appreciation assumptions may not match your market

    National home price appreciation has averaged ~4% annually since 1968, but markets diverge dramatically. Sun Belt metros averaged 10%+ during 2020-2022; coastal markets often lag the national average during correction cycles. Local supply constraints are the main driver.

  • Capital gains exclusion is not modeled by default

    If you've lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain from federal capital gains tax. Many calculators show gross profit without applying this exclusion. Relevant when projecting sale proceeds.

    Home Sale Capital Gains Calculator

Related Calculators

VA Loan Calculator 2026 →Closing Costs Calculator →Mortgage Affordability Calculator 2026: Your Limit →
Your Results

Based on your inputs

ℹ️Demo numbers — replace inputs to see yours
Total Monthly Payment
$2,443positive

P&I: $1,911 + MIP: $133

Monthly Payment Breakdown

Home Price$300,000
Down Payment$10,500 (3.5%)
Base Loan Amount$289,500
Upfront MIP (1.75%)$5,066
Total FHA Loan$294,566
LTV Ratio96.5%
Monthly P&I$1,911
Monthly MIP$133
MIP DurationLife of loan (30yr)
Total MIP Cost$47,768
Total Monthly PITI$2,443

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Decision guides

How Much House Can I Afford?
Real income-to-mortgage math before you shop.
Rent vs. Buy: The Full Picture
Break-even timeline + hidden costs compared.
First-Time Homebuyer Checklist
Step-by-step from offer to close.

Deep-dive articles

⚡ Key Takeaways

  • FHA loans require only 3.5% down with 580+ credit score — lowest barrier to homeownership
  • FHA MIP (mortgage insurance) adds 0.55–1.05% annually to your loan cost — often $100–$200/month
  • FHA's debt-to-income ratio limit is 43% (sometimes 50% with compensating factors)
  • FHA loan limits in 2024: $498,257 standard, $1,149,825 high-cost areas
  • Upfront MIP: 1.75% of loan amount, typically financed into loan balance
  • Unlike conventional PMI, FHA MIP often lasts the life of the loan for <10% down payments

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of HUD. The FHA doesn't lend money — it guarantees lenders against borrower default, which allows lenders to offer loans to buyers who might not qualify for conventional financing.

FHA Mortgage Insurance Premium (MIP)

FHA's insurance isn't free — borrowers pay for it. There are two components: Upfront MIP (UFMIP): 1.75% of base loan amount. Charged at closing, almost always financed into the loan. On a $300K loan, that's $5,250 added to your balance. Annual MIP: 0.55% for 30-year loans with <5% down and loan ≤$726,200. Paid monthly (divided by 12). On $300K loan: $1,650/year = $137.50/month.

FHA vs Conventional: When Each Wins

FHA wins when: Credit score 500–679, Down payment <10%, High debt-to-income ratio (up to 43–50%). Conventional wins when: Credit score 740+, Down payment 20%+ (eliminates PMI entirely), Loan amount exceeds FHA limits, You want shorter mortgage insurance duration.

FHA Loan Requirements

Credit score: 580+ for 3.5% down; 500–579 for 10% down. Employment: 2-year history required. Debt-to-income: Generally ≤43%; sometimes 50% with strong compensating factors. Property: Must be primary residence; must meet HUD's minimum property standards. Loan limits: 2024 standard $498,257; high-cost areas up to $1,149,825.

The Real Cost of FHA MIP vs Conventional PMI

$300,000 home, 3.5% down ($10,500), 30-year loan at 7.0%. FHA total MIP paid over loan life: ~$75,000+ (never cancels with <10% down). Conventional PMI same scenario: ~$25,000 (cancels at 78–80% LTV, typically 7–9 years). FHA's extra MIP cost: ~$50,000. However, if your credit score is 620 vs 760, the conventional rate might be 1–1.5% higher, making FHA more economical despite higher MIP.

FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. With a credit score of 500–579, a 10% down payment is required.

FHA charges an upfront MIP of 1.75% of the loan amount (financed into the loan) and annual MIP of 0.55–1.05% depending on loan term, LTV, and loan size. Annual MIP is divided by 12 and added to monthly payment.

FHA loan limits vary by county. The 2026 standard (floor) limit for single-family homes is approximately $524,225 in low-cost areas, with high-cost areas up to about $1,209,750. Limits are indexed each year to changes in conforming loan limits — use HUD's loan limit lookup for your specific county.

For loans with 10%+ down, MIP cancels after 11 years. For loans with less than 10% down, MIP is required for the entire loan term (30 years) unless you refinance to a conventional loan.

FHA is better for buyers with credit scores below 680 or limited down payment. Conventional wins when you have 20% down (no PMI), credit score above 740, or want to avoid lifetime mortgage insurance.

For FHA loans with less than 10% down, you cannot remove MIP without refinancing into a conventional loan. You need at least 20% equity and a credit score of 620+ to refinance. With 10%+ down, MIP drops off automatically after 11 years of payments.

A minimum credit score of 580 qualifies for the 3.5% down payment option. Scores between 500-579 require 10% down. Below 500 does not qualify. Higher scores get better interest rates, so improving your credit before applying can save thousands over the loan term.

FHA loans are only for primary residences that you plan to occupy within 60 days of closing. You cannot use FHA for investment properties or vacation homes. However, you can buy a 2-4 unit property with FHA, live in one unit, and rent the others.

The upfront MIP is 1.75% of the base loan amount, typically financed into the loan. On a $300,000 loan, this adds $5,250 to your loan balance. This one-time fee is separate from the annual MIP that is included in your monthly payment.

VA loans offer 0% down with no mortgage insurance for veterans. USDA loans offer 0% down for rural properties with income limits. FHA requires 3.5% down with lifetime MIP. VA is best for eligible veterans, USDA for rural buyers, and FHA for urban buyers with lower credit.

FHA Upfront MIP = Loan × 1.75% (financed into loan)

Monthly MIP = (Loan × Annual MIP Rate) ÷ 12

Total Monthly = P&I + Monthly MIP + Property Tax + Insurance

Annual MIP rate: 0.55% (30yr, LTV >90%); 0.50% (30yr, LTV ≤90%)

Published byJere Salmisto· Founder, CalcFiReviewed byCalcFi EditorialEditorial standardsMethodologyLast updated May 12, 2026

Primary sources & authoritative references

Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.

  • HUD — U.S. Department of Housing and Urban Development — HUD (opens in new tab)
  • FHFA — Federal Housing Finance Agency — FHFA (opens in new tab)

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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.